According to reliable sources, Bayer's global head of active ingredient production wrote to customers on February 11 that due to a mechanical failure in the manufacturing plant of a supplier of a key raw material, production will drop sharply. According to the supplier's notification, it is expected that the production line will be repaired for about three months. Due to this force majeure event, Bayer has notified that their scheduled deliveries of certain orders for glyphosate or products containing glyphosate may be affected.

You must know that the market for glyphosate was weak before and after the Spring Festival. The mainstream price has dropped from more than 80,000 yuan to 75,000 yuan, and there was an offer of 72,000 yuan. In addition, according to AgroPages, most of the international market orders were placed in January, and they were basically wait-and-see since February, and the terminal sales price of glyphosate in the United States has fallen by 20%.

The U.S. market is currently entering an intermittent period of crop rotation. Glyphosate was applied in March to ensure planting in July, and it is in the glyphosate replenishment stage. The U.S. market is conservatively estimated to be out of stock at 15-20 million gallons (about 56,000-75,000 kiloliters).

Brazilian soybeans are about to be harvested, and the peak season for glyphosate shipments to the Brazilian market will start in April and last until September. This year, most of the orders that need to be shipped in April have not yet been placed. Bayer's announcement undoubtedly injected a stimulant into the seemingly weakened glyphosate market, and the market price of glyphosate began to rise that day.

It's unclear what the affected raw materials are or how much of Bayer's affected glyphosate capacity. Due to the high price and the downward trend in the previous period, the stock of glyphosate in the terminal market is limited. We will wait and see how long the boosting effect of Bayer on the glyphosate market will last.