The performance of chemical fertilizer winter storage market may not reach the level of previous years.
As a result of lower food prices, farmers' income has been greatly affected, just like the cold winter weather, which makes people unpleasant. Similarly, it is not only grain farmers who are deeply troubled, but also the life of farmers is not easy. As the saying goes, agriculture is good, fertilizer market is prosperous, food prices are high, fat is popular. The benefit of grain farmers is not good, the fertilizer industry is also deeply affected.
The problem of credit sales of agricultural materials is more serious.
In addition to the fact that farmers' enthusiasm for growing grain has been affected, the decline in grain prices has also aggravated the difficulty of recovering funds after selling agricultural materials on credit. Nowadays, the sale of agricultural materials on credit is very common in rural areas. It is common for dealers to sell agricultural products to farmers on credit in the spring and repay the money after selling grain during the autumn harvest. But now faced with a year of low food prices, the problem of agricultural credit sales has become more serious.
Recently, it has been reported that there are risks in selling on credit; without selling on credit, it will be difficult to occupy the market and have no sales. It is inevitable that "bad debts" will occur in normal years, let alone this year.
Dealers are cautious about winter storage.
Many veteran farmers sigh that the good times for the chemical fertilizer industry are over. Indeed, chemical fertilizer production has increased significantly in recent years, the risk of light storage is not easy to grasp, the enthusiasm of dealers is not high, and now the price of agricultural products is lower, which makes dealers cautious about light storage.
At present, the winter storage market has been launched, but with the exception of dealers in Northeast China who have begun to make small payments to long-term cooperative manufacturers, most dealers are still waiting and seeing.
The two days from November 7 to 8 are the days when the phosphate and compound fertilizer conference was held. According to the usual practice of previous years, the meeting of phosphate and compound fertilizer is a sign that the fertilizer city is about to turn warmer. Because since then, with the increasingly clear winter storage policy of manufacturers, the market will enter a winter reserve fertilizer period of about 3 months, when manufacturers collect money, downstream dealers build positions, the market is in full swing. However, according to the current feedback from the industry, the performance of the winter storage market in 2015 may be difficult to reach the level of previous years.
"the winter reserve will still be reserved this year, but certainly not much, and I will wait for the manufacturer to give a clear quotation for the winter reserve before making a decision." A distributor of agricultural materials said that he would reflect to the manufacturers the affordability of farmers in terms of prices, because the prices of agricultural products are not ideal this year, farmers' confidence in growing grain is weakening, and it is estimated that the input of agricultural materials will be much lower.
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