Summary:Compound fertilizer prices continue to weaken, with market transactions further declining by 20-50 yuan! The market sentiment remains cautious, transactions are sluggish, and compound fertilizer enterprises are currently facing significant pressure from finished product inventory, with some continuing to operate at a loss. In the short term, the downward trend of raw materials is expected to continue, and the transaction of autumn fertilizer may continue to be flexible downward.
Declining factor:The sales of compound fertilizers are currently slow. This is attributed to the decrease in grain prices and the impact of extreme weather conditions in major producing areas, which have led to a lack of enthusiasm for planting among farmers. Additionally, fluctuations in sales channels have resulted in a smaller overall distribution volume. In the short term, the downward trend of raw materials is expected to continue, and autumn fertilizer transactions may continue to be flexible and downward.
Situation prediction:At present, the price of compound fertilizers is mainly fluctuating slightly. On the supply side, compound fertilizer companies are under greater inventory pressure, and the overall startup rate is decreasing. On the demand side, the grassroots demand has not yet started, and dealers are taking goods on demand, mainly adopting a pick-as-needed approach. On the raw material side, the prices of urea, monoammonium phosphate, and potassium chloride are weakening, and the cost support for compound fertilizers is decreasing. In summary, it is expected that the price of compound fertilizers will continue to be weak in the short term.
Government action:Vigorously promote the application of crop formula fertilizers and implement prescription fertilization. In line with the actual agricultural production of our county, the main crop and main economic crop fertilizer main push formulas for 2024 (Ping Nong Fa [2024] No. 56) are issued. Encourage cooperation between agriculture and enterprises, guide and support fertilizer companies to produce according to the "prescription"; encourage agricultural supply and marketing units to scientifically adjust the types of fertilizer purchase and sale, implement real-name fertilizer purchase and account construction, and effectively promote the purchase of fertilizer according to the "prescription". Support fertilizer production enterprises, fertilizer wholesale enterprises, agricultural supply and marketing stores, fertilizer retail stores, etc. (hereinafter collectively referred to as "fertilizer supply units") and farmers' professional cooperatives, family farms, agricultural enterprises, large-scale planters, small-scale planters, etc. (hereinafter collectively referred to as "fertilizer use units") to adopt "order-style", "group purchase-style", "direct supply-style" and other models, strengthen cooperation, integrate resources, and enhance the promotion and application of formula fertilizers.
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