All posts by hlancey@bloomberg.net

Sulfur

ADNOC - Abu Dhabi, Alberta, Brazil, China, Market Watch, Qatar, Sulfur, Tampa, U.S. Gulf, Vancouver, West Coast

Tampa:

Tampa molten sulfur contracts were valued at $102/lt CFR for the fourth quarter, an 85% increase on $55/lt CFR in the third quarter.

US Gulf:

The US Gulf market fell to $72-$77/mt FOB, down from last week’s $80-$85/mt FOB. Growing inventory levels reported from a number of export origins contributed to softness in the Gulf, sources said.

Brazil:

Brazil prices slipped to $104-$110/mt CFR, off from $108-$115/mt CFR at last report.

Vancouver:   

Vancouver export prices slid to $75-$80/mt FOB, below the week-ago $78-$85/mt FOB. The ongoing slowdown in the Panama Canal is reportedly limiting potential export destinations from Vancouver, as some buyers are unwilling to risk delays.

Alberta:

Estimated Alberta netbacks were unchanged at (-)$13-$30/mt FOB. The range included both molten sulfur cargoes contracted into the US market and solid tons sold internationally through the Vancouver export market.

West Coast:

Prilled sulfur loading from the West Coast softened to the $75-$80/mt FOB range, falling from $78-$85/mt FOB at last report. Molten sulfur contracts were valued at $85-$90/lt FOB for loading in the fourth quarter.

China:

China export prices declined to $102-$105/mt CFR, down from last week’s $105-$110/mt CFR range. Market players expect prices to continue on a downward trajectory through the short term.

ADNOC:

December pricing from Abu Dhabi National Oil Co. (ADNOC) was posted at $87/mt FOB Ruwais, a 13% decrease from $100/mt FOB in November.

Qatar:

Muntajat prices were posted at $85/mt FOB Ras Laffan for December loading, below the $98/mt FOB posting for November. Qatar’s December offer is too high for the current market, players argued.

Ammonium Thiosulfate

Amthio, Eastern Canada, Eastern Cornbelt, Market Watch, Western Cornbelt

Eastern Cornbelt:

The ammonium thiosulfate market was unchanged at $245-$270/st FOB in the Eastern Cornbelt, with the low confirmed at Terre Haute, Ind., and the high at inland terminals. The Cincinnati market remained at $255/st FOB.

Western Cornbelt:

Ammonium thiosulfate was steady at $225-$260/st FOB in the Western Cornbelt, with the low reported at Waterloo, Iowa.

Eastern Canada:

The ammonium thiosulfate market remained in a broad range at C$465-$545/mt FOB for the last confirmed offers in Eastern Canada.

Crop/Weather

Crops/Weather, Eastern Canada, Eastern Cornbelt, Northeast, Northern Plains, Western Cornbelt

Eastern Cornbelt:

US Drought Monitor

The week began with light snow across central and northern Illinois, Indiana, and Ohio, followed by unseasonably warm temperatures for the balance of the week.

Highs reached the upper-50s and low-60 in all three states, but another cold front was in the weekend forecast. Scattered snow flurries were reported in Michigan at midweek, with a stronger chance of winter precipitation expected by the weekend.

Sources continued to talk of heavy fall application volumes in the region, though the pace slowed in early December with the spotty precipitation.

“I think everyone had an excellent fall,” reported one contact at midweek. “Well above average if you were able to keep product in the bin, which most did not. Everyone ran out of P and K at some point either due to low water at the dock or slow barge movement.”

Western Cornbelt:

Record-breaking warm temperatures were reported during the week in parts of Iowa, with highs reaching the upper-50s and low-60s in Des Moines, Ottumwa, Mason City, and Waterloo.

Unseasonably mild weather was also reported in Nebraska and Missouri, though a wind advisory was in effect for western Missouri at midweek, with reports of 40-50 mph gusts. Highs in the low- to mid-60s were reported in several Missouri locations as the week progressed.

Cooler temperatures and rain were in the forecast for Iowa by the weekend, however, with snow showers possible in north-central areas of the state.

Northern Plains:

Corn Wheat Soybean Index

Lows in the 20s and 30s were reported in the Dakotas at midweek, with highs reaching the upper-50s to mid-60s in both states, setting daily records in some locations. A wind advisory was posted for the western Dakotas late in the week, however, with high temperatures dropping to the 40s by the weekend.

Southern Minnesota also saw some unseasonably warm temperatures during the week, with highs reaching the 60s in numerous locations. Snowfall was possible in northern Minnesota by the weekend, however, with a wintry mix of precipitation also in the weekend forecasts for southern areas of the state.

Northeast:

A wintry mix of rain and snow was reported across much of the Northeast during the week, with lows falling to the upper-20s and 30s and highs struggling to reach the 40s in New England and the low-50s in the Mid-Atlantic region.

While minimal snow accumulation was reported in the region, another system was expected to bring widespread precipitation by the weekend as a strong system moves in from the Great Lakes region.

Eastern Canada:

Much of Eastern Canada was hit with the first significant snowstorm of the season as the week began, with up to25 cm of accumulation reported in Renfrew, Ont., 32 cm in Montreal, Quebec, and 12-15 cm across the Maritimes. Another system brought 2-4 cm of accumulation to southern Ontario on Dec. 7, with additional flurries possible over the weekend.

Transportation

Illinois River, Mississippi RIver, Ohio River, Transportation, U.S. Gulf

US Gulf:

Low water conditions forced towing restrictions in the US Gulf during the week, sources said. Southbound tows moving above New Orleans were limited to 10.5-foot drafts, while drafts for tows moving to the north were capped at 9.5 feet. Drafts were allowed up to 9.5 feet in both the East and West Canals.

Bayou Sorrel Lock was closed for guidewall repairs from 7 a.m. to 4:30 p.m. daily, prompting waits in a wide 5-12 hour range, down from last week’s 36-hour highs. Tows arriving before 4:30 p.m. were allowed to pass before work begins the next morning, and the closures were expected to pause when wait times push above the 24-hour mark. Lock operators reportedly focused on southbound lockages during the day, while northbound tows were given priority overnight. The project is set to run into March 2024.

The Coast Guard reported an eight-hour shutdown in the Intracoastal Waterway near Amelia, La., on Dec. 7 due to a channel obstruction. Travel was expected to resume at 2 p.m. local time.

Harvey Lock wait times improved for the week, with Corps data showing intermittent delays up to 12 hours, down from 2-3 days at last report. Harvey navigation is limited to 300-foot lengths and 70-foot widths whenever head conditions fall below 1.5 feet, and travel is restricted to daylight hours. The lock was shut completely from June 15 to Oct. 16 due to reverse head conditions.

Planned gate repairs at Bayou Boeuf Lock, located at Mile 93.3 of the West Canal, will prompt a series of four-day travel outages beginning in mid-January 2024.

Port Allen Lock waits were noted up to nine hours, falling from 2-4 days at last report, while delays at Industrial Lock ran up to 31 hours, Corps data indicated. Intermittent 6-8 hour wait times were reported at Colorado Lock. Tows passing Brazos Lock were delayed up to 19 hours during the week.

Mississippi River:

Towing restrictions continued on the Mississippi River due to low water levels. Loading drafts on northbound tows were cut by 20-25% on the lower river, while southbound drafts were reduced by 15-20%, unchanged from last week. Towing widths were capped at six barges on travel between Cairo, Ill., and the Gulf, down from the normal 7-8 barge limit, depending on vessel horsepower.

The river gauge at Memphis, Tenn., stood at a low-stage (-)7.38 feet on Dec. 7, with forecasts predicting a (-)9.9-foot reading on Dec. 21. Sources previously expected towing widths to fall to five barges on the lower river when Memphis levels dip below the (-)8.0-foot mark, forecast to occur on Dec. 15. Levels at Vicksburg, Miss., were reported at a low-stage 4.3 feet at midweek.

Loading drafts at St. Louis were reduced by 10-15% for the week, while the Corps dialed back draft limits by 5-10% between Cairo and St. Louis. The river gauge at St. Louis returned a (-)0.9-foot reading on Dec. 7.

Dredging was reported at Miles 738 and 486 of the lower river, as well as in the Baton Rouge, La., area, while a 24-hour shutdown was scheduled at Mile 925 on Dec. 7 for dredge work. Sources reported channel work at Miles 171-172, 95, 51-52, and 30 of the upper river.

Upper-river locks began closing for the winter navigation season on Dec. 4, sources said, while others were due to follow over the Dec. 11-18 period. Locks 11-16 and 18-20 are scheduled to remain open on weekdays from 8:00 a.m. to 4:00 p.m. throughout the season, conditions permitting, while Locks 21 and 22 will be staffed to pass vessels 24/7.

Intermittent six-hour delays were reported at Lock 27 during the week.

Illinois River:

Loading drafts were reduced by 5-10% on the Illinois Waterway due to low water levels. Dredging was reported at Miles 226-228.

Wickets were raised at both Peoria Lock and LaGrange Lock on Dec. 6, necessitating lockages through both locations. Corps data showed scattered 5-9 hour delays at Peoria, while eight-hour delays were noted at LaGrange. Dresden Island Lock waits peaked at 10 hours on Dec. 5-6.

Ohio River:

Sources put maximum loading drafts at 10.0 feet through most sections of the Ohio River, down from 10.5 feet at last report. Tows were restricted to 15 barges for both upriver and downriver travel.

The Montgomery Lock primary chamber is shut through Dec. 22 for repairs and maintenance, forcing delays up to 17 hours for the week. Due to strong outflows, assist boat usage was mandatory on southbound lockages through Smithland Lock. Dredging was reported at Mile 974. On the Tennessee River, Kentucky Lock is scheduled to shut for upper guidewall replacement from Jan. 22 to Feb. 15, 2024. Corps data showed Kentucky Lock delays as high as 43 hours during the week. Sporadic 10-45 hour waits were noted at Wilson Lock.

Ceres Solutions, Co-Alliance to Pursue Merger Vote

Featured, U.S.

Indiana-based cooperatives Co-Alliance Cooperative Inc. and Ceres Solutions Cooperative Inc. on Nov. 29 announced an agreement to pursue a merger. The decision follows a three-month due diligence period announced in September (GM Sept. 1, p. 1) to investigate the potential synergies of a combined organization.

Upon reviewing the final due diligence report, the Boards of Directors of both cooperatives unanimously approved a member vote for the merger to drive efficiencies, share expertise, and deliver a diverse portfolio of services to customers, the companies announced.

“After considerable analysis, we believe this merger will provide a tremendous opportunity for our 20,000 farmer-owners. This will allow our team to provide more robust service offerings, greater investments in our assets, and an unmatched customer experience,” said Jeff Troike, CEO of Ceres Solutions. “Together we know there will be great synergies from this historic merger with the Co-Alliance team.”  

If the membership approves the merger, the new cooperative will have 1,800 full-time employees serving hundreds of rural communities in Indiana, Illinois, Michigan, and Ohio. Membership voting will take place in the coming weeks with the hope of completing the merger in early 2024.

“This merger drives our mission of serving our farmer-owners and the communities where we live and work,” added Kevin Still, CEO of Co-Alliance Cooperative. “The combined strength and legacy of success of Ceres and Co-Alliance creates a powerful partner for our farmer-owners and customers, helping them grow future generations. We are excited about this dynamic combination and what it means for the strength and future of the cooperative system.”

Based in Indianapolis, Co-Alliance is the result of the merger of five cooperatives in 2002, but its roots date back to the 1920s. The company provides agronomy, propane, fuels, grain, seed, hog production, and feed products and services from 79 locations in Indiana, Michigan, and Ohio, with approximately 51 of those dealing with agronomy.

Formed in 2007 as a partnership of local farmer-owned cooperatives, Ceres is based in Crawfordsville and has more than 750 team members in 37 counties across Indiana and Michigan. Ceres operates 65 locations with approximately 41 providing agronomy and/or fertilizer. Ceres added T&T Fertilizer Inc., Goshen, Ind., in 2020 (GM Feb. 7, 2020), and also completed mergers with North Central Co-op, Wabash, Ind., in 2017 (GM Aug. 18, 2017), and Falmouth Co-op in northern Michigan.

Ceres and Co-Alliance are already partners in Endeavor Ag & Energy, a joint venture that provides agronomy, propane, and feed services in north-central Michigan.