Nufarm reiterates full-year guidance

Lower costs for many key farm inputs could encourage farmers, according to the managing director of crop protection outfit Nufarm, Doug Rathbone.

And Mr Rathbone reiterated a full-year profit forecast within previous guidance.
The balance of Nufarm's financial year that ends on July 31 is expected to see strong demand for the company's products as Australian, North American and European farmers approach key planting periods, he said.

"With several farm input costs, in particular fertiliser and fuel, below levels of last year, and many soft commodity prices still well above their five-year averages, growers have a strong economic incentive to utilise crop protection products to maximise yields," Mr Rathbone said in a report to shareholders.

He said the southeast of Australia needs additional autumn rains to support planting activity for winter crops, but other regions including Western Australia, Queensland and much of NSW, are well placed in terms of soil-moisture profiles.

"Demand for the company's extensive range of products is expected to be strong," Mr Rathbone said.

Rabobank Australia announced yesterday that early predictions for wheat plantings were for a slight reduction.