WITH current fertiliser pricing levels reflecting historic highs and being largely driven by global factors, CBH Fertiliser has worked to challenge input costs by setting local pricing benchmarks for shareholder benefit.
The early procurement and shipment of urea to ensure warehouses were full at the right time of season was key to the co-operative's strategy, with a second shipment recently received at Esperance, Geraldton and Kwinana, a third vessel currently loading and a fourth set to arrive in June.
Last month, CBH's new 25,000 tonne fertiliser storage facility at Esperance was completed with the latest Yargus blending equipment installed.
In addition, the co-operative installed its own weighbridge and front end loader at the site for greater control.
CBH head of fertiliser David Pritchard said that had allowed for the successful and accurate blending of multiple products, plus specialities such as liquid copper, zinc and fungicides for the 2022 seeding season.
"Our new Kwinana development project is also progressing well with development currently sitting at 30 per cent with concrete works completed for the UAN tanks and warehouse foundations," Mr Pritchard said.
"The UAN pipeline installation has begun and will follow the Kwinana Grain Terminal berth where vessels will discharge.
"We expect the facility to be operational in the first half of 2023 and look forward to bolstering our granular and liquid offering across a wider catchment for all growers to enjoy."
When it comes to market supply and demand, India purchased DAP at similar levels to quarter one which will add some support to pricing.
Plus, global markets are aligning which will help settle prices.
On top of that, while the Chinese government announced continued strict inspection clauses on exports of phosphates, regional loop holes exist which should increase exports.
From Russia, product on its way to India and Latin America however is being resisted in most other countries and growers in WA should expect local prices to remain north of $1600 per metric tonne during May to July.
Mr Pritchard said for nitrogen, Indian officials have asked for 1.5 million tonnes of urea and were inundated with 2.6mt offered overnight last week from producers and traders
"All markets are keenly awaiting the final prices to set benchmarks for the next six to eight weeks and buyers are ready across Australia, Mexico, Brazil and South East Asia for June," he said.
"Russian products will not be accepted into India, however Central America and Brazil will accept."
As a result, local Australian dollar prices are likely to fluctuate in a range of $1250 to $1300 per metric tonne during May and June.
Global producers continue to push prices higher for potash on the back of Russia and Belarus being sanctioned and removing 30pc of global export trade from the market.
Bangladesh concluded a tender for standard MoP at levels which will dictate benchmarks for granular and local prices are expected to move above $1500 per metric tonne during May to July.