Recently, due to the imbalance of the supply and demand structure and the price increase of upstream raw materials, the price of glyphosate has hit a new high in 10 years. In the short term, there will be almost no new production capacity in the world, and prices are expected to rise further. In view of this situation, AgroPages specially invited expert teams from Brazil and other regions to conduct detailed research on the glyphosate terminal markets in major markets such as Brazil, Paraguay, and Uruguay, and have a preliminary understanding of the current supply, inventory, and price of glyphosate in various markets. condition. The survey results show that the South American glyphosate market is more severe, with insufficient inventory and soaring prices. In Brazil, the soybean planting season is about to start in September, the market is anxious, and farmers are running out of time...
The selling price of the mainstream dosage form terminal market has soared by nearly 300% compared with the same period last year
The research team surveyed 5 mainstream Brazilian distributors from several major agricultural states in Brazil: Mato Grosso, Parana, Goiás and Rio Grande do Sul, and obtained 32 feedbacks; in Paraguay It investigated two mainstream distributors and the president of the Santa Rita City Agricultural Planting Association in Paraguay. In Uruguay, the research team investigated an agricultural material broker who has a lot of business dealings with cooperatives and agricultural companies every year.
The survey found that mainstream glyphosate preparations have increased significantly, and the current delivery price of glyphosate in the Brazilian market has soared by 200%-300% over the same period last year. Taking 480g/L liquid as an example, the recent price of this product in Brazil is US$6.20-7.30/L. According to data from Congshan Consulting, in July 2020, the unit price of Brazilian glyphosate 480g/L liquid was between 2.56-3.44 US dollars per liter at an exchange rate of 0.19 real to US dollars, which was nearly three times higher than the same period last year. And the highest price of glyphosate 79.4% soluble granules has reached 12.70-13.80 US dollars/kg in Brazil.
Comparing the current price of glyphosate in the Chinese market (RMB to USD is calculated at 0.15), the price of glyphosate 480g/L in a large package is 3.1 US dollars/liter, and the price of 757 soluble granules is 5.77 US dollars/kg; 500 can be The price of wet powder is US$4.35/kg.
Market inventory is about to run out
At present, the supply situation of glyphosate in Brazil's terminal market is quite severe. Many agricultural companies have already sold a large amount of glyphosate and some agricultural inputs denominated in reals in 2020, and the inventory has been exhausted. In addition, considering the current tight supply of glyphosate in China, Brazil’s terminal market has also broken orders, forcing farmers to accept higher prices.
In addition, the epidemic has caused congestion and delays in important ports around the world, and the ocean freight of international routes has continuously set new historical records, which has also made the cost of glyphosate worse. At present, the freight for goods sent from Shanghai, China to the port of Paranagua in Brazil is about 10,000 US dollars, and there may be slight differences between ports. In the past, the prevailing market price was below $1,000, a difference of ten times. Calculated according to the glyphosate 480g/L water agent, the current freight cost of one ton is about 400 US dollars, compared to 40 US dollars before.
Brazil is about to usher in a new round of soybean planting in September, and end users have generally expressed their concerns about the future market of glyphosate. Where will the glyphosate market go?