Reports from China suggest the Chinese government will cancel an export tax rebate on pesticides, including glyphosate, which is likely to have a flow on impact on prices, with the rebates up to 9 percent of the value of the exported product.

This is likely to have an impact on world glyphosate prices by the end of next week, which are currently between $3.50 and $4 a litre - down from $4.25 to $4.75 during the peak season of April (peak demand) but up on the summer prices of between $3.30 and $3.60.

Rising prices for the world’s most popular herbicide are likely to be welcomed by Australian chemical manufacturing and rural merchandising businesses who have been moaning about the hit to profits caused by low world chemical prices.

Elders has been sent virtually to the wall as a result of lower earnings, while other prominent agribusinesses such as Nufarm has come under pressure for its earnings guidance, which many analysts believe is too high in light of the low prices currently on offer, and especially in light of the poor performance of other businesses in the sector such as Elders.

Victorian Farmers Federation (VFF) grains group president Russell Amery said any increase in prices was a concern, and farmer were anxious not to see a return to 2008’s record price levels.

“You look back two years ago, and it was more economical to use other products such as Spray Seed (paraquat) rather than glyphosate, and we don’t want to see a return to those levels.

“Any input price rise where there is not a similar lift in grain prices is an issue for us.”

Mr Amery said volatility in chemical markets, as well as the price rises, had made it difficult for growers.

“Chemical prices used to be relatively steady, but now we are seeing the peaks and troughs you see in the fertiliser industry, which is another issue farmers need to manage.”

And he had a swipe at chemical manufacturers and retailers crying poor.

“We appreciate what these businesses do and we realise that we need them in the bush, but this cycle of volatility is something we have been going through as well, both in input costs and grain prices, along with seasonal variability.

“It hasn’t been an easy year for these businesses, but they also need to see that farming has been a tough gig over the past decade, especially across large parts of south-eastern Australia.”

Glyphosate price rises are unlikely to have a major impact on 2010-11 gross margins for growers, with the majority of glyphosate to be used already applied.