All posts by Dan Cole

Mosaic Raises Potash Postings Again

The Mosaic Co. announced on Oct. 5 that it is moving its potash prices up another $10/st in North America for October-February shipment, effective immediately. New postings in the Cornbelt include $320/st FOB river warehouses and $325/st FOB inland warehouses, with the NOLA barge price firming to $295/st FOB.

The increase follows Mosaic’s earlier announcement on Sept. 26 of a $15/st potash increase, as well as potash price hikes announced by Nutrien Ltd. and Intrepid Potash on Oct. 4. Mosaic said its new postings are now up $25/st from summer/early fall pricing.

MMTC Closes Urea Tender At Higher Price

The MMTC urea tender closed on Oct. 5 with the lowest West Coast offer at $352.88/mt CFR from Gavilon and the lowest East Coast offer at $356/mt CFR from Dreymoor. A total of 1.7 million tons were offered from 15 companies, including two producers.

The new prices reflect about an $80/mt increase in the delivered price to India. For more details see the Oct. 5 issue of Green Markets.

Intrepid Hikes Potash Postings by $25/st

Intrepid Potash Inc. on Oct. 4 announced a $25/st potash pricing increase, effective immediately. The company said posted prices at Carlsbad, N.M., for new orders are now at $337/st FOB for 62 percent standard grade and $330/st FOB for 60 percent granular. New postings at Moab/Wendover, Utah, moved up to $345/st FOB for 60 percent granular, and $340/st FOB for 60 percent standard.

Intrepid said it is currently evaluating its Trio pricing “based on market factors related to the potash price increase.”

The potash price hike from Intrepid follows a $25/st increase announced by Nutrien Ltd. earlier on Oct 4, and a $15/st increase announced by The Mosaic Co. on Sept. 26.

MMTC Bans Iranian-Backed Urea Offers

Just days before the Oct. 5 closing of its urea tender, Indian trading company MMTC issued an update that bans offers from Iran and any other country facing economic sanctions.

The announcement was posted on the MMTC website. The update stated that offers of urea of “open origin” will not be considered, and offering companies must clearly state the origin of the urea in their offers. “[Offers of] material from countries of origin against which sanctions have been imposed/likely to be imposed, shall not be considered and price bids of such tenders shall not be opened,” the announcement said.

The move had an immediate impact on the Arab Gulf urea price. Oman reportedly sold a cargo to Keytrade at $340/mt FOB, a level which represents an almost $20/mt jump in price in just one week.

Arab Gulf urea is expected to play a dominant role in the MMTC tender. Industry sources said the MMTC action – and the subsequent price rise in the Arab Gulf – could draw out Chinese granular.

See the Oct. 5 issue of Green Markets for more analysis of the MMTC tender.

Nutrien Announces $25/st Potash Price Increase

Nutrien Ltd. announced on Oct. 4 that it is raising domestic potash prices by $25/st, effective immediately. This takes the posted level for new orders up to $325-$330/st FOB Midwest terminals, with the average NOLA barge price moving up to $300/st.

The company reported that it is sold out through November for domestic potash sales. “This price move reflects strong global demand and tight supplies, in advance of what we expect to be a robust fall application season in North America,” Nutrien said.

The Nutrien increase follows a $15/st potash price increase announced by The Mosaic Co. on Sept. 26.

Brownlee to Retire as Nutrien CFO

Saskatoon-based Nutrien Ltd. announced on Oct. 1 that CFO Wayne Brownlee has decided to retire, effective Oct. 31, 2018. The company has been working through a succession plan and expects to announce the new CFO by the end of October.

“The board and management team would like to thank Wayne for his many years of leadership,” Nutrien said. “Wayne has made significant contributions towards the creation and financial strength of Nutrien and to predecessor companies, which benefited from his guidance and dedication in a career that spanned 40 years.

Cronus Executes EPC Contract with ThyssenKrupp

Cronus Fertilizers announced on Oct. 1 that it has executed a lump-sum turnkey contract with ThyssenKrupp Industrial Solutions (TKIS) for the engineering, procurement, and construction (EPC) of its Tuscola, Ill., fertilizer plant. Cronus said its contract with TKIS is the result of an extensive review process between the two companies that began in 2017.

“We are proud to reach this important milestone in realizing our vision for a state-of-the-art fertilizer facility that will provide major benefits for the entire region,” said Erzin Atac, CEO of Cronus Chemicals. “We look forward to continuing our partnership with TKIS and community leaders as the project moves toward construction.”

Cronus said the Tuscola facility, which is expected to have 2,300 mt/d of ammonia production capacity, is on track for groundbreaking in the second quarter of 2019. The company said the facility will be a major source of fertilizer for farmers throughout Illinois and the Midwest because of its strategic location, replacing the need for imported product.

“Thyssenkrupp Industrial Solutions is honored Cronus Chemicals has selected us as the designated EPC contractor for their planned 2,300 tons per day ammonia plant project in Illinois,” said Dennis Lippmann, CEO Thyssenkrupp Industrial Solutions, North America. “We look forward to continuing our partnership and supporting Cronus during the next phase of this exciting project. Our successful track record in ammonia plant technology and undisputed expertise in engineering, procurement, and construction qualifies us for this large-scale project, which will move forward once the financing is completed.”

PCI Nitrogen Moves Up Pasadena Turnaround

PCI Nitrogen reported on Aug. 15 that it is moving up the 2019 turnaround at its Pasadena, Texas, production facility due to an unscheduled maintenance event. The turnaround is now taking place in August and will last approximately 17 days. The facility produces synthetic granular ammonium sulfate, liquid ammonium thiosulfate, and sulfuric acid, which are marketed exclusively by Interoceanic Corp. (IOC).

Nutrien Announces Acquisition of Agrible Inc.

Nutrien Ltd. announced on July 16 that it has entered into a definitive agreement to acquire Agrible Inc., a digital agriculture company based in Champaign, Ill., for total consideration of $63 million. Agrible has an advanced platform and product offering that includes agronomic and on-farm advisory tools, data science capabilities, predictive analytics, and a global sustainability business. The company has 55 employees.

“The acquisition of Agrible is consistent with our strategy of investing in the growth of Nutrien’s Retail business to further strengthen and differentiate our leading global position,” said Chuck Magro, Nutrien president and CEO. “We expect to recognize significant strategic and financial benefits from the transaction by leveraging Agrible’s capabilities to deliver unique, value-enhancing solutions across our Retail network.”

Agrible’s platform is currently being used by approximately 17,000 growers representing some 11 million acres across numerous global geographies, but the company’s largest commercial market is the U.S. Its primary digital product offerings include Morning Farm Report®, Spray Smart®, Nutrient Engine, and Find My Seed®, as well as other complementary digital and mobile offerings.

The transaction is expected to close in late July 2018. Mike Frank, president of Nutrien Ag Solutions, said the Agrible agronomic and sustainability tools will immediately be incorporated into Nutrien’s existing digital platform.