California:
Potassium nitrate prices in California were unchanged at $1,430/st FOB Stockton for bulk tons, $1,535/st FOB for bulk bags, and $1,555/st FOB for 50-pound bags.
All posts by mickeybarb@charter.net
Potassium Thiosulfate
Eastern Cornbelt:
Potassium thiosulfate was unchanged at $780/st FOB Terre Haute, Ind., for the last offers.
California:
The potassium thiosulfate market remained at $780/st FOB Sacramento.
Crops/Weather
Eastern Cornbelt:
Wet weather was reported across much of central and southern Illinois during the week, with temperatures climbing to the low- to mid-40s as the week progressed. By Jan. 20, however, forecasts warned of scattered snow showers and temperatures in the high-20s and low-30s across most of the state.
Wet and windy conditions were also reported across Indiana at midweek, with highs reaching the mid-50s on Jan. 19 in some locations. Most of central Ohio was under a severe thunderstorm watch on Jan. 19, with wind advisories also in effect for many areas. Highs in the 30s were expected across Ohio by the end of the week, down significantly from the 50s seen at midweek.
Western Cornbelt:
Rain and snow showers moved through Iowa as the week progressed, with temperatures ranging from the mid-20s in western Iowa to the mid-30s in the eastern areas of the state. The heaviest snow fell in the western and northern portions of the state, with some locations seeing up to a foot of snow by Jan. 19.
Nebraska was also blanketed with a fresh layer of snow at midweek, with up to a foot reported across the southern Panhandle, southwestern Nebraska, and into the Nebraska Sandhills. The winter precipitation forced the closure of Interstate 80 west of North Platte, Neb., and also west of Grand Island, Neb.
Much of Missouri endured spotty rains during the week, although a wintry mix of rain, snow, and ice was reported in northwestern areas of the state, prompting a weather advisory at midweek.
California:
Drier weather was reported across California at midweek after several weeks of relentless Pacific storms that caused widespread flooding, mudslides, and numerous road closures due to washouts and heavy snow.
The abundant moisture had a huge impact on drought conditions in California. Extreme-to-exceptional drought is now completely eliminated after dominating the state for months, thanks to precipitation levels that were more than 300% above normal since late December.
Even so, most of the state remained in moderate-to-severe drought as of Jan. 19. As for reservoir levels, Shasta Lake now stands at 52% capacity compared to 34% a year ago; Folsom Lake is at 52% capacity and is expected to be full by May; and Lake Oroville is at 58% capacity compared to 44% a year ago.
Pacific Northwest:
Rainfall was reported across western Washington and Oregon during the week, but levels were well below the heavy precipitation produced by the “atmospheric river” that churned through both states earlier in the month. Forecasts at midweek talked of an inch of rain along coastal areas of Oregon and less than a half-inch in the valleys.
A winter weather advisory was in effect for southern Idaho at midweek, with up to three inches of snow expected in the valleys and eight inches in the mountains. Although skies were generally gray and cloudy, Montana was mostly dry during the week, with seasonal temperatures in the teens and 20s.
Western Canada:
Scattered snow flurries and fog were reported in Saskatchewan at midweek, but unseasonably mild temperatures dominated over much of Western Canada. Forecasts warned of freezing rain over parts of southern Manitoba on Jan. 18, while steady rains were also common across western British Columbia during the week.
Transportation
US Gulf:
Bayou Sorrel Lock guidewall replacement continued to prompt intermittent weekday travel outages between 6:30 a.m. and 5:00 p.m., triggering delays in an 8-18 hour range through the week. Work at the site was projected to run into March 2023.
Maintenance and repairs at Colorado Lock were scheduled to continue through Jan. 27, blocking navigation daily from 7:00 a.m. to 7:00 p.m. Corps data showed delays up to 27 hours on Jan. 16-17. Sources expected Calcasieu Lock to shut for 4-5 days of maintenance before the end of January.
Sources reported daily Brazos Lock closures starting on Jan. 11. The work was anticipated to block weekday travel intermittently between 7:00 a.m. to 7:00 p.m. through Feb. 8.
The Atchafalaya River’s Little Island Pass, Middle Island Pass, and Riverside Pass remained shut to commercial travel until further notice due to the presence of active, exposed underwater pipelines in the channel. Detours were available through Port Allen Lock.
A number of shutdowns lasting 8-24 hours each are expected at the Port Allen Route’s Miles 63-64 in February for bridge replacement work. Firm dates were anticipated to be announced before the end of the month.
Industrial Lock delays topped out at 46 hours for the week, according to Corps lock data. Wait times at Calcasieu Lock spiked to 24-26 hours on Jan. 16-17.
Mississippi River:
Despite a brief reprieve from low water levels noted one week ago on the upper Mississippi River, a fresh decline in levels prompted tighter towing restrictions during the week.
Draft limits on southbound cargoes running between St. Louis and Cairo were reduced to 10 feet, sources noted, one week after lifting to 11 feet, while tows heading upriver continued to be limited to 9.0 feet through the St. Louis area. After registering a 2.16-foot crest on Jan. 12, the river gauge at St. Louis fell to (-)0.62 feet on Jan. 17.
Dredging previously reported at the upper river’s Miles 24-47 partially concluded on Jan. 15, with work at Mile 39 wrapping up ahead of the planned Jan. 18 end date. Work continued at Mile 28.5 on Jan. 16, however.
Tow sizes continued to see limited reductions on the lower river. The leftover restrictions were reported to target only the largest towing vessels on the waterway. The NWS reassessed river projections at Memphis on Jan. 17, lifting the Jan. 30 forecast from 5.2 feet — just above the gauge’s 5.0-foot Low Stage — to 12.0 feet.
Sources described a shutdown at Mile 0.0 of the lower river to allow for the removal of submerged dredging pipelines, blocking travel from 6:00 a.m. to 6:00 p.m. on Jan. 17. A second shutdown was possible on Jan. 19, if needed, to complete the work. Similar shutdowns were scheduled for Jan. 17 and potentially Jan. 19 at Mile 65.
The primary chambers at Mel Price Lock and Chain of Rocks Lock are closed for repairs and maintenance through March 31, leaving transit possible solely through both sites’ auxiliary chambers. As a result, wait times at Mel Price stretched to 2-4 days on Jan. 19, while Chain of Rocks delays were reported at 1-3 days.
A safety advisory is in place through June at the I-10 bridge, located at Miles 228-230 on the lower river, due to ongoing bridge maintenance. Channel reinforcement at Miles 192-139 was scheduled to continue through late January. Navigation was reportedly unavailable for roughly 12 hours at Miles 84-86 on Jan. 16.
Illinois River:
Lock slowdowns continued on the Illinois Waterway for the week, reportedly due to lingering congestion from fog-related slowdowns noted one week earlier. Wait times at LaGrange Lock ran up to 14 hours, while boats passing Peoria Lock saw delays up to five hours. Wickets were reported in the raised position at the sites, necessitating lockages at both locations.
Commercial navigation is expected to be unavailable on most of the Illinois River between June and September due to lock maintenance and repairs.
Ohio River:
Bellville Lock hydraulic repairs begun on Jan. 17 blocked navigation from 7:00 a.m. to 5:00 p.m. Delays were expected in a 12-24 hours range for the duration of the project, scheduled to run through Jan. 20.
The Belleville Lock and Racine Lock auxiliary chambers were expected to shut Jan. 30 through Feb. 26, followed by a Racine Lock main chamber shutdown slated for Feb. 26 through March 12. Greenup Lock will see a primary chamber closure running March 12 through April 12.
The Tennessee River’s Kentucky Lock saw delays up to 11.5 hours during the week. Boats transiting Wilson Lock waited up to 7.5 hours to pass.
Arkansas River:
Daytime Norrell Lock closures, reported underway since June, were scheduled to conclude on Jan. 20. One additional 48-hour shutdown was expected on Jan. 30-31.
Binding Sales Agreement Inked for Sale of Stake in Eritrean SOP Project
China’s state-owned construction firm Sichuan Road and Bridge Group Co. Ltd. (SRBG) has agreed to a binding agreement to buy 50% of the Colluli Mining Share Co. (CMSC), from Australia’s Danakali Ltd. for US$166 million, according to a Jan. 12 statement by Danakali.
The sulfate of potash (SOP) project, located in Eritrea, East Africa, is 100% owned by CMSC, a 50:50 joint venture between Danakali and the Eritrean National Mining Corp. Danakali announced in October that it had executed a term sheet with SRBG for the sale (GM Oct. 7, 2022).
Danakali said the parties aim to complete the transaction in the second quarter of 2023.
Danakali expects to receive US$122 million from the deal after taxes, and pending shareholder approval it plans to distribute 90% of net proceeds to shareholders. It expects to continue as a listed company to identify new projects and potential alternative growth opportunities.
Yara Meets Its European Fertilizer Demand Despite Gas Crunch
Yara International ASA, Europe’s largest fertilizer maker, said in an interview with Bloomberg that it has averted supply shortages in recent months, despite curbing production capacity. Numerous European fertilizer plants were forced to shut in 2022 as costs surged for natural gas. However, prices began to retreat late last year, helping Yara keep operating approximately 57% of its ammonia production capacity as of the third quarter, versus 35% it had warned about in August.
European farmers spread most of their fertilizer for the growing season in spring.
“I’m not aware of any significant shortages that we had in the last few months,” Yara CEO Svein Tore Holsether said. “We’re working around the clock to make sure we can supply to as large extent as possible for this season as well.”
Warm winter weather sent European gas prices to a one-year low last week, although he cautioned “how quickly that can change.” The company also has to weigh other factors before restarting operations, as it is expensive to stop and start plants. Yara will give its next capacity outlook in February.
It has also called for joint action to reduce fertilizer and food dependency on Russia following the outbreak of the war in Ukraine and stopped sourcing potash from Belarus, formerly its key supplier, in line with sanctions. Still, Belarusian potash is finding its way into markets through different channels and routes, he said.
Bion Announces Beef/Waste Treatment Project
New York City-based Bion Environmental Technologies Inc., a developer of livestock waste treatment technology, and Olson Farms/TD Angus, North Platte, Neb., on Jan. 9, announced a letter of intent to develop a 45,000-head sustainable beef cattle feeding operation near North Platte, Neb.
The project will consist of three of Bion’s 15,000-head modules that will include barns with solar panels, manure collection and conditioning, biogas recovery and upgrading, ammonia capture and production of organic fertilizer products, and clean water recovery.
Bion said all processes and performance will be third-party verified, USDA-certified, and recorded on blockchain, which will support a transparent and sustainable-branded premium product with dramatic reductions in impacts to air, water, and soil.
Bion and Olson Farms/TD Angus will work together to create a definitive joint venture in early 2023, with construction anticipated to commence in the second half 2023. That timeline is expected to produce initial beef and coproduct revenues by the end of 2024 that will ramp up quickly in 2025 to up to 135,000 head of annual production.
SQM Invests in Australia’s Azure Minerals
Mineral developer Azure Minerals Ltd., West Perth, Western Australia, said on Jan. 10 that Chile’s SQM Inc., via its wholly-owned subsidiary SQM Australia, will make a cornerstone investment of up to A$20 million to acquire a 19.99% interest in Azure through a two-stage transaction. SQM has made an initial A$4.2 million investment.
Subject to the satisfaction of certain conditions precedent, SQM will invest a further A$15.8 million to hold a 19.99% interest in Azure. The junior said the SQM investment is a strong endorsement of the lithium potential of the company’s Andover Project in Western Pilbara and highlights the upside potential for Andover to grow into a globally significant lithium mining and processing operation. Andover also contains deposits of nickel, copper, and cobalt.
Univar Draws Interest from Apollo, Platinum
US chemical distributor Univar Solutions Inc. has attracted interest from potential bidders, including Apollo Global Management Inc. and Platinum Equity, according to Bloomberg, citing individuals familiar with the matter. Univar ended talks with Brenntag SE earlier this month (GM Jan. 6, p. 2; Dec. 2, 2022), saying it would continue talks relating to “other indications of interest.”
The private equity firms have been studying the business, according to the sources. The interest is reported to be preliminary and there is no certainty they will proceed with bids, the sources said, adding that Univar has not made a final decision on a sale and could opt to remain independent.
A take-private deal for Univar would incur less antitrust risk than a merger with a peer, and would likely make it easier to restructure.
With one of largest private transportation fleets for chemicals in the world, Univar has a market value of about $5.5 billion. The stock rose 3.3% to $33.60 at 3:07 p.m. in New York trading on Wednesday, Jan. 11.
The company, which is led by CEO David Jukes, merged with rival Nexeo Solutions Inc. in 2019 and then sold its plastics business in that same year.
Representatives for Apollo, Platinum, and Univar declined to comment.
Trammo GmbH – Management Brief
Trammo GmbH, Zurich, Switzerland, on Jan. 11 announced that Walter Singer has joined the company as Vice President, Urea Product Manager. He will be responsible for worldwide trading activities in urea and other finished fertilizers. The initial focus will be on the European market with supply sourced from Uzbekistan, Kazakhstan, Azerbaijan, and Turkmenistan via Trammo’s Multi-Modal Terminal in Batumi, Georgia, which has opened a new logistics corridor for transit of finished fertilizers and other products by vessels, barges, and railcars from Central Asia to the West.
Trammo said that Singer, who has been involved in the commodity trading business for more than 20 years, brings a wealth of experience to the company. He joins Trammo from EuroChem Group AG, Zug, Switzerland, where he was Global Head of Urea, responsible for managing the urea product line and trading operations.
“On behalf of the company and its Board of Directors, I would like to welcome Walter to Trammo,” said Vildan Bekirov, Trammo’s Executive Vice President, Product Manager of Sulfur and Finished Fertilizers. “Walter has strategic and trading experience in finished fertilizers to help grow the business and will add immediate value to the group.”
“We are delighted that Walter has joined the company and will help us build on the success of our terminal in Batumi, Georgia, as a route for the transit of urea and other finished fertilizers from Central Asia,” said Edward Weiner, Trammo President and CEO. “Finished Fertilizers have been in Trammo’s DNA for over a half century, and we are excited to be expanding the business.”