This past year was certainly an interesting one for the chemical market.  The price of glyphosate remained at or near historic lows all season.  Much of the pricing pressure seemed to be associated with the low cost of branded glyphosate.  Name brand glyphosate increased its total glyphosate trading volume on XSAg by over 300% as its percent market share on XSAg increased dramatically.  We believe glyphosate pricing will increase subtly throughout the season, without any significant increases unless market conditions change.

Low glyphosate prices and margins have and will continue to open up more opportunities.  Chemicals other than glyphosate have a much wider range when it comes to potential profit margin.  By doing a little more shopping or naming your price on XSAg growers will find chemicals with substantial savings potential.

- Jeff Stow

Roundup Powermax has increased its share of the glyphosate market on XSAg substantially this season.  In past years the cost spread between branded and generic glyphosate was much higher leading 96% of XSAg users to buy generic.  However, as the cost of branded and generic glyphosate has gotten closer , XSAg users buying Roundup Powermax jumped from 4% to 27%.  Through the season Roundup pricing has slowly increased, while generic glyphosate pricing has taken far less of an increase on average.  If this trend continues we may soon see the market share shift back toward generic glyphosate.

Many of the most popular chemicals are currently or are forecasted to have significant price increases.  We are also seeing low inventory levels for many top products.  The combination of low inventory and increases prices leads us to suggest buying the bulk of your chemicals now if you haven't done so already.  This is not the year to wait it out.  The likelihood of large price increases far outweigh the possibility of prices holding or dipping slightly.

- Jeff Stow

December was a very busy month for us.  Many members bought chemicals early this year.  Roundup Powermax prices started low, but have been moving up quickly.  If that trend continues the generics may take back some of the lost market share.  While generic glyphosate pricing has been increasing, it has not increased drastically over the past 2 months.

Branded Chemical pricing has increased significantly from last season in many cases.  Specifically, the pricing on fungicides like Headline and Stratego.  We will be watching closely to see if this trend continues or if the market will soften.  Some of the top trading products have been Valor SX, Outlook, Me-too-lachlor II, Atrazine, Lexar, Goal 2XL, and many others.

- Jeff Stow

As we expected glyphosate prices have risen a bit.  There are still very competitive deals on generic and name brand glyphosate, but that may not last much longer as costs continue to climb. 

Many growers are buying early this year as chemical costs seem to be rising in general.  We are continuing to gain chemical market pricing information, make sure to call our sales representatives for pricing updates.  

If you are not sure about next season's chemical needs you can alwaysprepay for your chemicals on XSAg.com.  Once we have collected your payment you can Name Your Price for your specific chemical needs when ready.

- Jeff Stow

Glyphosate inventory at the manufacturer level is shrinking.  Current import levels of glyphosate are very low.  As dealers and distributors begin to sell through their current inventory the supply levels in the channel will decrease quickly.  My opinion is that unless imports pickup up dramatically we could see an increase in glyphosate pricing in the near term.  Many XSAg members are buying now and I don't disagree with their decision.

Top trading products this week: Roundup Powermax, Valor SX, generic Canopy EX, and Clethodim...if you use those products it may be a good time to buy.

Just a few years back, about 80% of our members called in asking for specific brand names.  It is amazing that in a short time it seems 80% of our members call in asking for a product by its active ingredient.  Requests for glyphosate, clethodim, and dicamba are much more likely than requests for specific manufacturers of those products.  As more chemistry comes off patent I would anticipate this trend to continue.

- Jeff Stow

Well, I think we have found the bottom in the new Powermax price.  How long will it last, 1 week, 1 month, 3 months, all season long?  Only time will tell.  Buying early looks to be a can't lose proposition as an up tick in price seems like a much stronger possibility than a down turn.

- Jeff Stow

4LB Glyphosate has been trading $0.50 a gallon lower from just a week ago and Roundup trading prices have dropped significantly making it competitive with the generics.  This Fall is a great time for bargain hunters.  Find your bargain at www.xsag.com.

- Jeff Stow