Agrochemical Market to Grow 3% in 2012
13 June 2012 The 2012 agrochemical market is estimated to grow at 3%, according to a Phillips McDougall report.
Factors contributing to this increase are continued high crop prices, even though prices decreased in 2011. Glyphosate prices are relatively stable, while volume demand is expected to grow as the market continues to expand, according to the report.
Wheat
Wheat prices have fallen and stabilized in 2012 after reaching highs in 2011. According to Phillips McDougall, this trend will remain through 2013. Factors include an increase in production and a decrease in global stock levels based on USDA estimates.
Maize
Globally, corn plantings have increased in response to high corn prices, particularly in USA and Brazil. Despite this, CBOT futures are expected to decline through the rest of the year and into 2013, according to Phillips McDougall. Prices are estimated to plateau at $205 per tonne, or $5.25 per bushel in the United States. In addition, a 3.3% growth in planted area will lead to a 19.4% increase in global stocks.
Cotton
During 2011, global prices of cotton steadily decreased as production rose and stocks recovered, according to the report. Estimates indicate global cotton area will fall by 5.4% in 2012, and in particular United States cotton area will decrease by 10.7%.
Rice
A 0.6% increase in global planted area is expected. Production is forecast up by 0.7%.
The most important rice markets from an agrochemical value viewpoint are Japan, China and South Korea, the report stated. Japan and Korea in particular have experienced a decline in planted area. A further marginal reduction is expected in 2012, according to Phillips McDougall. Some stability is expected in South Korea.
Oilseed
Canola planted area is expected to rise due to favorable prices, especially in Canada, the United States and Australia.
In both the USA and Canada around 90% of the crop is planted with herbicide tolerant varieties, according to Phillips McDougall. In Europe, estimates indicate a fall in oilseed rape area, mainly in Germany, France and the UK. This will bring 2012 totals to be about the same as those from 2011, the USDA forecast.
Get The Newsletter Today!
