Canola crops have received a welcome rainfall boost and drop in urea prices, but are now facing increased risk of disease outbreaks.
Falling urea prices are handing farmers a welcome boost to the bottom line, but increasing fungicide demand brought on by unexpected wet weather could take some of the shine off the season ahead.
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Advanced Ag general manager Andrew Mann said urea prices had dropped sharply over the past four to six weeks, falling from a peak of $1450 per tonne in June to about $800 per tonne now.
"There is better access now, along with government subsidies, which makes the market level out," Mr Mann said.
Other markets have helped fill the gap left by disrupted Middle East supply, with Mr Mann pointing to Asia as a consistent buyer, while China has moved in and out of the market as needed.
But he cautioned the market was still far from settled.
“There is still that element of the unknown. Things can quickly go pear shaped,” Mr Mann said.
For now, though, the falling prices are translating into real relief for growers, particularly coming off the back of solid rainfall.
Advanced Ag general manager Andrew Mann says that while farmers are happy with good rainfall and dropping urea prices, there are other challenges on the horizon.
Photo by
Rechelle Zammit
“The prices coming down for farmers has been great, and we are also coming off the back of some good rainfall,” Mr Mann said.
“It makes a big difference to the bottom line.”
Crops across the region are tracking well ahead of schedule as a result, with Mr Mann estimating growth was running about two weeks ahead of normal.
That same rainfall, however, has created new potential for headaches.
Demand for fungicides has surged as wet conditions drive up disease risk, particularly in canola and pulse crops.
“Demand for fungicides has just gone through the roof,” Mr Mann said.
The problem, he said, traced back to suppliers being caught off guard.
“Suppliers weren’t prepared for the wet weather. They were bracing for a dry spell and were nervous to bring in too much, to be over-stocked,” Mr Mann said.
“Now that we have had all this rain, we have a shortage.”
The timing is unfortunate.
According to the Grains Research and Development Corporation, wet weather and high humidity within the crop canopy are conditions that directly favour fungal disease development.
This means that the wetter conditions farmers are enjoying for growth, are the same conditions putting pressure on their fungicide supplies.
Mr Mann said the flow-on effects of the shortage were still to come.
“We are going to feel that impact later on,” he said.
