Southern Plains:
The latest reference prices for Trio FOB Carlsbad include $400/st for standard, $435/st for granular, $460/st for premium, $475/st for OMRI standard and fine standard, and $510/st for OMRI granular. These prices reflect an $80/st drop from the last postings.
Eastern Cornbelt:
Potassium thiosulfate was unchanged at $780/st FOB Terre Haute, Ind., for the last confirmed offers.
Eastern Cornbelt:
Thunderstorms and colder temperatures were reported across Illinois as the week progressed, with highs topping out in the mid-40s across central areas of the state on Jan. 12-13.
Similar conditions were reported in Indiana, where a dense fog advisory was in effect for central areas of the state on Jan. 12. With highs expected to drop to the upper-30s and low-40s, forecasts warned of ice accumulation and snow flurries in many locations by the end of the week.
A winter weather advisory was also issued for northeastern Ohio on Jan. 12-13, with most areas expecting 1-3 inches of snow, but a few locations looking at up to six inches of accumulation.
Western Cornbelt:
Temperatures in central Iowa reached the mid-40s at midweek, but a cold front brought highs down to the low-30s on Jan. 12-13, along with an increased chance of precipitation by the weekend.
Rain and snow showers moved across Nebraska on Jan. 11, with highs topping out in the mid-20s to low-30s on Jan. 12. Similar conditions were reported in northern and central Missouri, where western areas of the state collected 2-3 inches of snow on Jan. 12 after highs in the 50s and low-60s earlier in the week.
Southern Plains:
Freezing rain and light snowfall were reported in parts of eastern Kansas as the week progressed, with forecasts warning of snow flurries in northern Oklahoma as well on Jan. 12. That was a stark change from earlier in the week, when near-record highs were observed in some parts of Oklahoma.
Temperatures climbed to more than 80 degrees in the Dallas-Fort Worth area at midweek, but a cold front was expected to push lows down to the 30s by the weekend. High-wind warnings were in effect for much of eastern New Mexico at midweek, prompting a red flag fire warning for the northeast and east central plains.
“The next significant application season should start along the Gulf Coast, mid- to end-February, weather allowing,” said one source. “I think when that starts we bring some stability and it sets a floor. Any swings after that will be driven by supply and demand.”
South Central:
A strong cold front pushed through parts of the Mississippi River Valley on Jan. 12, dropping temperatures and sparking strong thunderstorms in the South Central region.
An EF-1 tornado with 100 mph winds was reported near West Harrodsburg, Ky., early on Jan. 12, with at least 5,000 power outages confirmed across the state. The system also brought heavy rain and quarter-sized hail to central Kentucky, with forecasts warning of possible snow showers in Kentucky and northern Arkansas as temperatures fall on Jan. 12-13.
Tornado activity was also observed in northeastern Mississippi and southern Alabama on Jan. 12, with reports of extensive damage near Mobile and Selma, Ala. More than 35,000 customers in Alabama and more than 2,000 customers in Mississippi were without power on the afternoon of Jan. 12, according to poweroutage.us.
Southeast:
Strong winds and heavy rain were expected in Georgia, Alabama, and parts of the Carolinas on Jan. 12, with forecasts warning of possible tornado activity in an area stretching from Dothan, Ala., to Leesburg, Ga. By the end of the week, snow showers were possible at higher elevations in North Carolina.
A number of tornadoes were confirmed in Alabama on Jan. 12, causing extensive damage in locations such as Decatur, Moulton, and Selma.
Although most of Florida enjoyed calm, warm weather during the week, a cold front was expected to drop temperatures to the mid-50s by the weekend, with overnight lows in the 40s.
US Gulf:
Guidewall replacement underway at Bayou Sorrel Lock triggered intermittent weekday travel between 6:30 a.m. and 5:00 p.m., resulting in waits up to 16 hours through the week. The project was anticipated to continue into March 2023.
Colorado Lock maintenance underway through Jan. 27 restricted lockages daily from 7:00 a.m. to 7:00 p.m. Delays were recorded in a 5-10 hour range on Jan. 10-11. Calcasieu Lock is tentatively slated to see 4-5 days of shutdowns in late January.
On the Atchafalaya River, Little Island Pass, Middle Island Pass, and Riverside Pass are closed to commercial travel until further notice due to exposed underwater pipelines in the channel. Detours were suggested through Port Allen Lock.
Sources expected a handful of closures at Miles 63-64 of the Port Allen Route in February due to pending bridge replacement work. The shutdowns were expected to last 8-24 hours each, with dates anticipated to firm up later in January.
Port Allen Lock wait times were counted up to six hours during the week, while Corps data showed Industrial Lock delays as high as 38 hours. Algiers Lock passages ran up to 16 hours on Jan. 10-11. Brazos Lock delays were noted at 4-7 hours.
Mississippi River:
Improved water levels on the upper Mississippi River, expected to last through at least the middle of the month, allowed for easing draft restrictions on the waterway.
Maximum southbound drafts were reported lifting to 11 feet on dry cargoes traveling between Cairo and St. Louis, although liquid drafts continued at a maximum 8.5 feet. St. Louis dry-barge draft limits also remained unchanged at 9.0 feet. Tow-size reductions continued to be noted on the lower river, although the cuts were reported targeting only the largest boats in the fleet.
Dredging reported at Miles 24-47 on the upper river prompted daily shutdowns from 6:00 a.m. to 6:00 p.m., sources said, leaving traffic to pass overnight. The effort was expected to continue through Jan. 18. Dredging at the lower river’s Mile 888 was expected to run Jan. 8-14. A vessel collision shut the lower river at Miles 285-315 on Jan. 9 for less than 24 hours.
Water levels at St. Louis remained in a tenuous position during the week. The St. Louis gauge was posted at 2.7 feet and falling on Jan. 11, with levels forecast to sink below the 0.0-foot mark on Jan. 17. The Memphis gauge, returning a healthy 16.92-foot reading on Jan. 11, was projected to recede below the area’s 5.0-foot Low Stage on Jan. 23.
The Mel Price Lock and Chain of Rocks Lock main chambers are shut for repairs and maintenance through approximately March 31, leaving tows to transit through the sites’ respective auxiliary chambers. Mel Price wait times were reported up to 28 hours on Jan. 11, while boats were delayed 20-35 hours through Chain of Rocks.
Repairs at the I-10 bridge, scheduled to continue through June, triggered a safety advisory at Miles 228-230 of the lower river. Revetment work at the Miles 192-139 was slated to run through January.
Illinois River:
Early-week fog at LaGrange Lock triggered delays up to 54 hours, sources said, while lingering congestion left wait times holding at 20-42 hours on Jan. 10-11. Wickets were raised at both LaGrange Lock and Peoria Lock, necessitating lockages at both locations. Vessels transiting Peoria Lock waited up to six hours to pass, while intermittent Marseilles Lock delays were observed in a 5-8 hour range.
The Illinois River is scheduled to close to commercial navigation June-September for lock maintenance and repairs.
Ohio River:
Bellville Lock is expected to shut down 7:00 a.m. to 5:00 p.m. on Jan. 17-20 for hydraulic system repairs, with delays of 12-24 hours anticipated. The secondary chambers at Belleville Lock and Racine Lock are slated to close Jan. 30 through Feb. 26, while Racine Lock will shut its main chamber Feb. 26 through March 12. Greenup Lock is due for a main chamber shutdown running March 12 through April 12.
Navigation returned to normal at the Tennessee River’s Kentucky Lock during the week following an unplanned shutdown on Jan. 2. Waits were clocked up to 13 hours on Jan. 10-11. Wilson Lock delays were noted averaging 5-6 hours through the period.
Arkansas River:
Daylight-hour shutdowns at Norrell Lock were scheduled to continue through Jan. 20. Sources expected a 48-hour closure at the site on Jan. 30-31.
California’s first blue ammonia and hydrogen facility, has lined up a Carbon Dioxide Management Agreement (CDMA) to sequester 370,000 mt/y of carbon dioxide (CO2) in San Joaquin County in Northern California. The project would produce 150,000 mt/y of blue ammonia and 10,000 mt/y of blue hydrogen.
The CDMA, which was announced on Jan. 4 by California Resources Corp. (CSC), Long Beach, an independent oil and natural gas company, is between CSC’s Carbon TerraVault Holdings LLC (CTV) and Grannus LLC (Grannus), an independent clean-tech company that is building a portfolio of blue ammonia and hydrogen production facilities to supply the agriculture, mobility, and marine fuel markets. Founded in 2012, Tucson’s Grannus is advancing projects in California and Alaska (GM Sept. 9, 2022; Aug. 12,).
The blue ammonia facility will use Grannus’ patented process, which is expected to operate a virtually emissions-free facility once the CO2 is sequestered. The blue ammonia is expected to be supplied to CALAMCO, a California-based cooperative that is also an investor in Grannus. Grannus has entered into a master ammonia sales agreement with CALAMCO in an amount up to its total ammonia requirements. A binding offtake agreement is subject to finalization and approval by Grannus and CALAMCO.
“As a next generation clean-tech company, we are excited to partner with such a knowledgeable carbon management provider as Carbon TerraVault due to their unique vault positioning in the heart of Northern California’s industrial sectors, strong subsurface expertise, and their leadership in California’s new energy economy and carbon management,” said Grannus CEO Matthew Cox. “California’s first blue ammonia fertilizer production facility is expected to further reduce the carbon intensity of California’s agricultural sector while delivering environmentally conscious food to every American’s doorstep. We look forward to furthering our decarbonization efforts in California.”
The Final Investment Decision (FID) for the project and commercial operational dates are being further refined; however, the project is expected to be commercial by the end of 2027 at the latest. aligning with CTV’s goal of 5 million mt/y by end of 2027.
The CO2 will be captured and then stored permanently underground by CTV. The CTV facility has CO2 storage capacity of 71 million mt. CTV will provide infield transportation and a permanent CO2 storage site in exchange for an injection fee on a per ton basis. The project’s location in proximity to the CTV III vault will eliminate the need for long haul CO2 transportation and certain midstream capital requirements. The parties said CO2 capture capital will be effectively eliminated as CO2 capture equipment, the most capital-intensive portion of CCS projects, is inherently incorporated into the base design of the Grannus project.
The CDMA provides Grannus with access to 50 surface acres, with the option for an additional 50 acres if expansion is pursued. CTV will have the right to take a majority stake in the total outstanding equity of the project company that holds the Grannus project. It will have an option to purchase equity in Grannus, as well as a right of first refusal to provide storage services for subsequent Grannus ammonia and hydrogen projects in California.
The construction process of the project and the associated CCS infrastructure is expected to provide at its peak approximately 250 temporary construction jobs and 31 permanent technical jobs.
CSC last month announced that its Carbon TerraVault JV Holdco (CTV JV) has a CO2 sequestration agreement with Lone Cypress Energy Services LLC, Tulsa, an independent energy company, for the proposed Lone Cypress Hydrogen Project, in Kern County, which aims to be California’s first blue hydrogen facility. It will produce 30 mt/d of hydrogen with the potential to expand to 60 mt/d with up to 200,000 mt/y of CO2 sequestration.
The Mosaic Co. reported October-November potash sales volumes of 1.25 million mt, down from the year-ago 1.31 million. However, revenues were up at $780 million from the year-ago $529 million.
The company said total fourth-quarter potash sales volumes are now expected to be in the range of 1.8-2.0 million mt, with realized MOP pricing at the mine in the range of $560-$600/mt. Earlier in the quarter, the Colonsay potash mine was temporarily idled as a result of the slower-than-expected recovery in demand (GM Dec. 9, 2022).
Phosphate volumes were down for the two-month period to 914,000 mt from the year-ago 1.14 million mt, with revenues also seeing a decline to $785 million from $902 million. Fourth-quarter phosphate sales volumes are expected to be in the range of 1.5-1.7 million mt.
Guidance for realized DAP prices on an FOB basis remains unchanged at $700-$750/mt. The company said that in addition to slower markets, lingering issues stemming from Hurricane Ian have continued longer than previously expected. Repairs to sulfuric acid plants supporting production at the Bartow facility are now expected to be completed early in the first quarter of 2023.
Mosaic Fertilizantes saw a slight decrease in sales volumes for the two-month period to 1.52 million mt from the year-ago 1.57 million mt. However, revenues were up, at $1.24 billion from the year-ago $989 million.
While demand recovery for both phosphates and potash has been slowed by seasonality in late 2022, Mosaic anticipates 2023 to be a strong year for nutrient application, supported by historically strong crop prices and constructive grower economics.
Kugler Co. in December announced the promotion of Tom Kohmetscher to Wholesale Marketing/Sales Manager, replacing Ron Soden, who announced his retirement after 48 years of service to Kugler and the fertilizer industry. Kohmetscher previously served as Retail Sales Manager at Kugler for 22 years, a role that was taken over by Chad Magnusson in October.
Founded in 1924 and headquartered in McCook, Neb., Kugler Co. is a regional manufacturer and supplier of liquid fertilizer products that are shipped coast-to-coast, as well as internationally.
The Mosaic Co. on Jan. 5 announced that Phil Bauer has been promoted to Senior Vice President, General Counsel, and Corporate Secretary, effective Jan. 3, 2023.
Since joining Mosaic in 2007, Bauer has managed legal support for business development activities, potash operations, offshore finance, commercial transactions, and corporate governance. His most recent assignment was as VP-Growth and Development, where he helped drive strategic vision across the organization, including the advancement of Mosaic’s soil health strategy and other innovation initiatives.
Prior to joining Mosaic, Bauer was a partner at an international law firm where he focused his practice on mergers and acquisitions, public and private securities offerings, and public company compliance matters, as well as general business advising.
Bauer earned his Juris Doctor degree from The George Washington University Law School in Washington D.C., and his B.S. in Foreign Service degree with honors from Georgetown University’s School of Foreign Service, where he majored in international politics. He also received his MBA from the Kellogg School of Management at Northwestern University.
Bauer succeeds Mark Isaacson, who is retiring in early 2023 after 34 years with Mosaic and predecessor companies.
Clean technology developer AmmPower, Toronto, on Dec. 30 announced that it has entered into a binding letter agreement to acquire 50.05% of the issued and outstanding common shares of Progressus Clean Technologies Inc. (formerly AES-100 Inc.), Toronto, a venture-stage green technology company focused on the development of novel hydrogen generation and separation technologies.
AmmPower said Progressus’ intellectual property has the potential to directly improve the efficiency of ammonia production through the extraction of hydrogen from dilute syngas. AmmPower expects to be able to use the Progressus hydrogen extraction technology in a variety of ammonia use cases, including shipping, cracking, and for use in its IAMM™ (Independent Ammonia Making Machine) fertilizer units.
”The Progressus intellectual property allows us to expand our technology based clean energy agenda,” said Dr. Gary Benninger, AmmPower CEO and Executive Chairman. “We have multiple use applications where the Progressus technology will enable us to be more vertically integrated while reducing system costs.”
AmmPower will acquire the 50.05% from certain shareholders (vendors) of Progressus. In consideration, AmmPower will issue an aggregate of 50,000,000 common shares of the company to the vendors at a deemed price of C$0.30 per company share.
In connection with the transaction, the vendors have also agreed to provide to the company an aggregate loan of $500,000, payable as follows: (a) $250,000 on the closing of the transaction, and (b) $250,000 on the date that is 30 days following the closing of the transaction. Both the initial loan and additional loan will bear an interest rate of 10% per annum, mature twelve months from the date of funding, and be convertible into company shares at a deemed conversion price equal to the trading price of the company shares on the Canadian Securities Exchange on the date of conversion.
The parties said they intend to complete the transaction as soon as is practicable, and subject to satisfactory completion of customary closing conditions, will use commercially reasonable efforts to enter into a definitive share purchase agreement by early January 2023.
According to its website, Progressus is a private company owned primarily by PowerTap Hydrogen Capital Corp., a hydrogen technology company, Vancouver, B.C., and Aberdeen International, a global resource investment company, Toronto, with a minority interest being privately held.
Progressus on Sept. 27, 2022, announced that it had discontinued negotiations with BioQuest Corp., Newport Beach, Calif., which has been involved in the CBD marketplace, pursuant to the Letter of Intent executed and announced on June 23, 2022, whereby BioQuest would acquire all of the issued and outstanding shares of Progressus.
Shares of Turkish fertilizer producers recently fell after President Recep Tayyip Erdogan said fertilizer and feed prices would remain fixed for at least four months, according to a Dec. 27 Bloomberg report. Fertilizer and feed prices will remain fixed until the end of April, state-run Anadolu Agency reported Erdogan as saying at a Dec. 26 cabinet meeting.
Meanwhile, agricultural credit cooperatives will apply a discount of up to 13% on chemical fertilizers and up to 5% on compound feed.
Hektas, which produces organomineral fertilizer, was not impacted by the announcement. However, the news may pressure shares of chemical fertilizer producers such as Gubretas, Bagfas, Tekfen, and Istanbul-based Oyak Securities.
