Glyphosate price falls 64% since 2022 in Argentina, points out AZ Group

Considered the main input for Argentine agriculture, glyphosate herbicide has lost 64% in value compared to its all-time record registered in 2022, according to a report from agribusiness consulting agency AZ Group accessed by AgroPages.

According to analysts, this glyphosate price behavior in Argentina is similar to domestic prices in China, where maximum values were also recorded in January 2022. Jeremías Battistoni, market analyst and author of the report, indicates that glyphosate prices show a downward trend in the Argentine local market.

So far this year, the price has fallen 38%, from $7.4/L to the current $4.6/L. Although the pace of declines has changed in 2024, the trend has been firm," the research added, stating that the price behavior was similar to domestic prices in China.

AZ Group also pointed out that, despite the input price decline being led by glyphosate (just as the price increase in 2021), other herbicides such as glufosinate and 2,4-D also follow the trend that began in 2022, with drops of 78% and 44%, respectively.

According to Argentine analysts, the price retraction in that market occurred despite the end of the "Tax for an Inclusive and Solidarity Argentina" (PAIS) in 2023. Valid for transactions made in foreign currency, this measure had been in effect since December 2019 and had an emergency character but had been extended since then.

Fertilizer Market

Regarding fertilizers, AZ Group highlights a recovery in demand in the local market with the reduction of the PAIS tax. "It directly impacts the formation of input prices in the local market. For urea, the impact is estimated at around $30/t, while for MAP, it is estimated at $46/t," the study said.

For urea, according to data published by INDEC (National Institute of Statistics and Census of Argentina), the country imported 96,000 tons of urea, reaching a cumulative total of one million tons in 2024. According to analysts, this represents a significant recovery compared to previous campaigns.

"The domestic market shows good dynamics driven by the progress of planting work. However, urea prices in the local market fell in December: port-lifted urea is quoted at $483/t, reducing its price by 6% in the month. The theoretical import parity is estimated at $500/t," AZ Group analyzed.

Regarding phosphate fertilizers, 50,000 tons of MAP were imported in November, bringing the cumulative total for the year to 765,000 tons of MAP and 281,000 tons of DAP. "These volumes exceed last year's numbers, although they are still below historical averages. In the local market, port-lifted MAP prices reach $827/t, reflecting a 2% drop in the month. The theoretical import parity is estimated at $749/t," they said in conclusion.

(Editing by Leonardo Gottems, reporter for AgroPages)