Great Lakes:
The SOP Magnesia market remained in a broad range at $625-$705/st FOB in Michigan, depending on grade, with the upper end reported for OMRI Trio.
Eastern Canada:
The SOP Magnesia market in Eastern Canada was unchanged at C$960-$995/mt FOB in early May, depending on grade, location, and supplier.
Eastern Cornbelt:
Potassium thiosulfate pricing was unchanged at $750/st FOB Terre Haute for the last reported offers.
Eastern Cornbelt:
Unseasonably hot weather blanketed much of the Eastern Cornbelt during the week, sparking a flurry of spring planting across the region.
Temperatures climbed into the 90s across Illinois as the week progressed, with high humidity driving heat index readings into the triple digits. Record heat was also reported in Indiana, with South Bend posting a daily record high of 88 degrees on May 11 and Indianapolis tying its May 11 record at 89 degrees.
Highs in the 80s were also reported across Ohio as the week progressed. Slightly cooler weather was on tap for the weekend, however, with highs in the upper-70s and an increased chance of showers and thunderstorms across the region.
Sources reported a surge in spring planting during the week as growers tried to make up for time lost to earlier weather delays. Corn planting as of May 8 was reported at 15% complete in Illinois, 11% in Indiana, and just 5% in Ohio, well behind the five-year averages of 58%, 39%, and 27% , respectively.
Soybean planting was also lagging at 11% complete in Illinois, 7% in Indiana, and 4% in Ohio, compared with five-year averages of 30%, 24%, and 14%, respectively. Ohio’s oat crop was 53% planted by May 8, trailing the 73% five-year average.
Western Cornbelt:
Multiple daily heat records were set across the Western Cornbelt during the week. Highs in Iowa on May 12 reached the upper-80s and low-90s. A severe weather threat was posted for eastern and central Nebraska on May 12 as temperatures soared to the mid- to upper-90s in numerous locations, with a record high of 97 degrees notched in Omaha.
Missouri also experienced summer temperatures during the week, with highs commonly reaching the upper-80s and low- 90s on May 11-12. Forecasts warned of potentially severe storms across the state on May 13, however, along with cooler temperatures.
Planting progress was ramping up quickly in the Western Cornbelt after weeks of weather delays. Corn planting in Iowa as of May 8 was just 14% complete, well behind the 63% five-year average, while progress in Nebraska and Missouri was reported at 32-39% complete, compared with 57-67% on average.
Soybean planting was also lagging at 7% complete in Iowa and Nebraska and 28% in Nebraska by May 8, while cotton planting in Missouri had progressed to 20% by that date, just slightly behind the 21% average. Rice planting in Missouri was just 31% complete by May 8, however, significantly behind the 61% five-year average.
Northern Plains:
Unseasonably warm weather sparked a series of strong thunderstorms in the Northern Plains during the week, which brought heavy rain, damaging winds, and large hail to some locations. Cooler weather was on tap later in the week, however, with highs expected to peak in the 70s.
Near-record highs in the upper-80s fueled severe weather across parts of the Dakotas and Minnesota on May 11-12. Storms dumped more than 3 inches of rain near Waseca, Minn., and hail 1 inch in diameter or greater was reported in Oronco, Plainview, Kasson, Pine Island, St. Michael, and Cottonwood, Minn., on May 11.
More than 80,000 Xcel Energy customers were without power in Minneapolis, Minn., on May 11 after a complex of thunderstorms brought heavy rain and 60 mph winds. Parts of western North Dakota were also hit by strong thunderstorms at midweek, raising concerns about worsening river and overland flooding in the Red River Valley.
“We’ve been on a rollercoaster here due to widespread rains every day or two,” commented one regional source. Another contact described the May rains as a potential “drought breaker,” noting that parts of central North Dakota collected 1-3 inches of rain during the week. “It’s getting later every day, and we will need some long days to get the crop in,” he added.
Corn planting as of May 8 was rated at 11% complete in South Dakota, 9% in Minnesota, and 1% in North Dakota, well behind the five-year averages of 32%, 48%, and 18%, respectively. Soybean planting also lagged considerably at just 2-5% complete in Minnesota and South Dakota, compared with an average of 12-25%. North Dakota growers had yet to register any progress on soybean planting as of May 8.
Small grains planting was also delayed in the region. Spring wheat and barley planting was 6-8% complete in North Dakota by May 8, compared with a five-year average of 33-37%, while progress in Minnesota was estimated at just 2-5% complete, well behind the 43-50% average pace. Oat planting was 63% complete in South Dakota, 23% in Minnesota, and 11% in North Dakota, compared with the five-year averages of 69%, 58%, and 32%, respectively.
The most significant planting delays were reported for sugar beets, however. Progress as of May 8 was just 2-8% complete in North Dakota and Minnesota, dramatically behind the 62-63% five-year average.
Great Lakes:
Highs across Michigan climbed well into the 70s during the week, providing a needed respite from recent cold, wet weather and sparking a flurry of fieldwork. Temperatures even reached the 80s in some parts of southern Michigan during the week.
Similar conditions were reported in Wisconsin, with unseasonably warm weather sparking a number of severe thunderstorms across the state on May 10. Highs in the 80s were confirmed at numerous Wisconsin locations during the week.
Growers were working swiftly to plant crops after weeks of weather-related delays. Corn planting as of May 8 was estimated at just 4-7% complete in Michigan and Wisconsin, well behind the five-year average of 22-29%. Soybean planting also lagged at 6-8% complete by that date, compared with 15-17% on average.
Michigan growers had just 36% of the sugar beets planted by May 8, well behind the 71% five-year average. The Wisconsin oat crop was 30% planted by that date, compared with 54% on average.
Northeast:
Gusty winds, low humidity, and steadily rising temperatures were reported across New England during the week. Although overnight lows continued to dip into the 30s and 40s, highs in the 70s and low 80s were in the forecast for May 12-13.
The same weather pattern was reported in Pennsylvania, Maryland, and New York, with highs climbing into the 70s as the week progressed. The warmup followed a period of heavy rainfall over the Mother’s Day weekend, with parts of Pennsylvania collecting four inches of precipitation.
The pleasant weather sparked a flurry of spring fieldwork across the region. One New York contact said fertilizer application and spring planting was running in “full gear now.” Pennsylvania growers had 13% of the corn crop planted by May 8, behind the five-year average of 20%.
“Currently there is a lot of rye and triticale laying in the fields and with the nice weather this week, I expect most of that will be put in the silo this week,” reported a Pennsylvania source. “Fertilizer for corn and tobacco is being delivered in moderate levels, with growers scheduling fertilizer heavier for the end of this week.”
Eastern Canada:
Corn planting and spring fieldwork was rapidly picking up the pace across Ontario during the week, thanks to favorable temperatures and soil conditions after weeks of cold, wet weather.
“We are not in the thick of it yet,” commented one contact. “I would say most of the wheat ground is done and they are starting on corn.”
One Ontario contact said he expected corn planting in his trade area to be 50% complete by the coming weekend, while another said growers were “still picking and choosing fields” with plans to be “full out” by the weekend.
Flood warnings were in effect for much of the Rainy River watershed along the Minnesota-Ontario border as a combination of melting snow and heavy rains pushed lakes and rivers to flood stages. According to the Duluth News Tribune, the high water impacts areas from Lake Vermilion all the way to Lake of the Woods, with near-record high water levels already reported on Namakan Lake.
By contrast, conditions were described as very dry across southern Quebec, prompting outdoor burning bans and warnings of fire danger. Temperatures in Montreal on May 11 climbed to the upper 70s, with forecasts suggesting highs could reach the mid-80s for May 12-14. Temperatures in the mid- to upper-70s were also reported in the Maritimes during the week.
U.S. Gulf:
Despite a May 4 move below the 12-foot mark at the New Orleans river gauge, persistent high water levels at Baton Rouge, La., were understood to keep towing and horsepower restrictions in place between NOLA and Baton Rouge for another week. The NOLA gauge was slated to remain below the 12-foot threshold through at least May 23.
The West Canal’s Calcasieu Lock, located at Mile 238.5, was closed to travel during daylight hours on Monday through Thursday, blocking movements through the site between 7:00 a.m. and 6:00 p.m. Navigation is scheduled to begin normalizing on May 19.
A repair operation underway at the Bayou Sorrel Bridge was noted blocking navigation daily between 7:00 a.m. and 11:00 a.m., and again from 1:00 p.m. to 5:00 p.m. Work at the site was scheduled to continue through the end of May.
Guidewall construction efforts at Bayou Sorrel Lock, projected to continue into early 2023, were noted hindering Monday-through-Friday travel between the hours of 6:30 a.m. and 5:00 p.m. Delays were noted up to 25 hours for the week.
Bayou Chene remained closed to overnight travel due to floodgate construction, leaving transit available daily between 7:00 a.m. and 7:00 p.m., while lengths were limited to 600 feet. Tows wider than 54 feet were required to travel with an assist vessel. Delays were anticipated in a general 6-12 hour range.
Maximum drafts at Miles 113-116 on the Atchafalaya River were posted at 10 feet due to shoaling reported in the Morgan City, La., area. In addition, tow lengths were capped at 600 feet, while lengths running longer than 400 feet were asked to use an assist tug. Widths were allowed up to a maximum 70 feet. Tows could bypass the restrictions entirely by detouring through the Port Allen Route.
Tows locking without assistance through Algiers Lock were subject to length and width maximums, effectively limiting barge counts to four standard barges or two 30,000 mt tankers per pass. Larger lockages were understood to remain available when traveling with an assist vessel. Most wait times were reported in the 20-37 hour range.
Ongoing construction scheduled through late 2022 at the Belle Chasse Bridge was anticipated to trigger intermittent navigational delays, expected to last up to 12 hours at a time. The structure is located at Mile 3 in the West Canal.
Port Allen Lock passages required up to 27 hours during the week, Corps data indicated, while most Industrial Lock waits were reported in a wide 10-26 hour range through May 9. Calcasieu Lock waits were posted up to 13 hours on May 9, and boats utilizing the Colorado Locks system were delayed up to nine hours.
Mississippi River:
High water levels at Cairo, Ill., were reported to restrict towing activity below St. Louis, with maximum barge counts reduced by 20-25%. Despite falling out of action stage late on May 8, depths recorded above the 25-foot mark at St. Louis through at least May 11 triggered daylight-only bridge navigation restrictions in the region, sources reported.
The gauge at St. Louis was recorded at 25.89 feet and falling on May 11. A 24-hour Flood Warning was posted for the area at 8:02 p.m. on May 10. Cairo levels stood at an action-stage 38.56 feet and rising on May 11. The gauge was forecast to crest at a minor-flood 40.5 feet on May 13, followed by a move below the 32-foot action stage on May 20. A Flood Warning posted May 10 was in effect through the morning of May 13.
High water at Vicksburg, Miss., and Baton Rouge prompted ongoing towing and bridge access restrictions further downriver, with no end immediately in sight.
The Vicksburg gauge was observed at an action-stage 36.08 feet and rising on May 11, with levels projected to remain at action stage through at least May 25. Baton Rouge stood above the 30.0-foot action stage threshold at 30.67 feet and rising on May 11, while forecasts predicted a 33.6-foot crest on May 24.
Rock-laying work reportedly started on May 10 at Mile 807 on the lower river. The roughly 30-day project was expected to block southbound movements through the area daily between 6:00 a.m. and 6:00 p.m.
Lock 21 wait times were posted up to five hours during the week. Intermittent Lock 24 delays were seen in a 5-12 hour range, while Lock 27 passages were noted up to 14 hours.
Illinois River:
Heavy rains caused flood conditions on parts of the Illinois River, with levels prompting slowdowns and bridge clearance issues in the Starved Rock area.
Following a May 6 crest at a minor-flood 451.99 feet, levels at Starved Rock were noted receding to an action-stage 449.1-foot level on May 11. Depths at the site were forecast to move below action stage during the current week. Wait times at Starved Rock Lock were noted up to six hours for the week.
The gauge at Peoria was observed at an action-stage 17.13 feet and falling on May 11. Noted at an action-stage 21.57 feet on May 11, the LaGrange river gauge was projected to remain at restricted levels through May 16.
Repairs and maintenance at Brandon Road Lock were scheduled to begin on May 9 and run through Sept. 8. Movements through the site will be limited to overnight hours between May 9 and Aug. 14, with towing widths capped at 70 feet. Navigation will stop completely from Aug. 15 to Sept. 4, followed by a return to overnight-only travel on Sept. 5-8. Normal operation is scheduled to return on Sept. 9.
Elevated river conditions kept wickets down at both Peoria Lock and LaGrange Lock through the week, sources said, allowing vessels to transit both sites without locking.
Ohio River:
Heavy rains were reported slowing or stopping travel on the upper Ohio River during the week.
The primary lock chamber at Belleville Lock was reported shut from May 1 through June 29 for planned maintenance and repairs. Passage remained available through the site’s secondary chamber during the week, resulting in 2-4 day delays.
Greenup Lock was noted kicking off a main chamber repair closure on a parallel schedule to Belleville Lock, running from May 1 through June 29 and forcing movements through the auxiliary chamber. Wait times were reported in the 16-43 hour range during the week.
Daytime travel through Cannelton Lock was expected to remain unavailable on Wednesdays and Thursdays until May 26. An additional maintenance period proposed to run from July 5 through Nov. 11 was expected to limit access to the site’s main chamber.
Hannibal Lock repairs were proposed for July 5 through Oct. 8. If enacted, transport is expected to pass through the auxiliary chamber, with delays likely.
On the Tennessee River, Kentucky Lock waits were reported in a wide 4-15 hour range. Despite the reported late-April conclusion of repairs and maintenance at the site, intermittent Wilson Lock delays continued to be posted up to 48 hours during the week.
Miter gate machinery repairs at the Cumberland River were anticipated to impact Cheatham Lock travel starting on May 16 and running through Aug. 5. Work at the location was scheduled to be conducted on a repeating two-week pattern, consisting of an 11-day closure followed by a three-day period of unrestricted navigation.
Arkansas River:
Norrell Lock planned maintenance efforts will necessitate a series of transit shutdowns persisting into January 2023. The lock is scheduled to shut during daytime hours on June 1-11; June 22-July 21; Aug. 1-10; Aug. 21-Sept. 21; Sept. 30-Oct. 9; Oct. 20-Nov. 18; Nov. 29-Dec. 23; and Jan. 3-31, 2023.
Morocco’s OCP SA plans to build a phosphate processing plant in Brazil, according to Bloomberg, citing the website of Brazil’s Ministry of Agriculture, Livestock, and Supply. In a meeting this week, OCP CEO Mostafa Terrab assured Brazil Minister Marcos Monte that the plant would be built, according to the report.
The size and timeline for the new plant were not given. In addition to the investment, OCP will collaborate with Brazil on the country’s National Fertilizer Plan.
OCP is currently the largest supplier of phosphates to Brazil. In 2021, Brazil imported more than US$1.6 billion in fertilizers from Morocco. OCP has been operating in Brazil since 2010, with seven offices.
Phosphate producer Itafos Inc., Houston, reported first-quarter net income of $33 million on revenues of $149.9 million, up from the year-ago $1.9 million and $90.1 million, respectively. Adjusted EBITDA moved to $60.4 million from the year-ago $20.6 million. Conda P205 production was off slightly at 89,096 mt from the year-ago 89,355 mt.
“We are pleased to report record performance during the first quarter of 2022 in terms of safety and financial results, along with continued strong operational performance,” said G. David Delaney, Itafos CEO. “We recorded $150 million of revenues and $60 million of adjusted EBITDA for the quarter and continued strong production out of our Conda facility. In addition, we made great progress toward deleveraging our balance sheet, having paid down $40 million of debt during the quarter.
“We have updated our full-year guidance for 2022 to reflect the continued strength of the business and strong fundamentals in the agriculture and phosphate fertilizer markets,” he added. “Finally, we remain focused on extending Conda’s current mine life through permitting and development of H1/NDR and evaluating strategic alternatives for our non-North American assets.”
Itafos is projecting first-half net income of $55-$65 million, second-half at $25-$30 million, and full-year at $80-$95 million. First-half Adjusted EBITDA guidance is $120-$130 million, second-half $90-$100 million, and full-year at $210-$230 million.
LSB Industries Inc. Founder Jack Golsen, 93, passed away on April 29, 2022. Golsen founded the company in 1968 and served as its president, CEO, Chairman of the Board, Executive Chairman, and Chairman Ameritus.
Golsen also served as Director of the United Way of Oklahoma and as a Trustee of Oklahoma City University, as well as numerous other corporate boards. In 1996, Golsen was inducted into the Oklahoma Commerce and Industry Hall of Fame as of one of Oklahoma’s leading industrialists.
Toronto-based green ammonia technology developer AmmPower Corp. announced on May 5 that Christopher Lilla will be joining the Company as Chief Financial Officer and as a member of AmmPower’s Board of Directors, effective May 1, 2022. The company also announced that Faizaan Lalani has resigned from the Board and as Chief Financial Officer, effective April 30, 2022.
Lilla has 20 years of progressive financial management experience, primarily at global automotive suppliers. AmmPower said he has extensive experience navigating global organizations through complex integrations, M&A transactions, and developing the finance function.
Lilla previously served as Executive Vice President and Chief Financial Officer of Mobex Global for more than three years. Prior to that he held roles of Vice President of Strategic Finance and Corporate Controller at Joyson Safety Systems, Vice President and Chief Accounting Officer at Federal-Mogul Powertrain, and progressive leadership roles at Delphi and KPMG LLP. Lilla is a graduate of Michigan State University, where he earned a B.A. and M.S. in Accounting, and is a certified public accountant.
“Chris has a proven track record of results-driven leadership, financial acumen and strategic thinking,” said Gary Benninger, AmmPower CEO and Executive Chairman of the Board. “We are excited to have him join the team as we continue to execute on our plan to advance green ammonia solutions.”
The Andersons Inc., Maumee, Ohio, reported first-quarter net income attributable to The Andersons from continuing operations of $6.1 million ($0.18 per diluted share), compared with $12 million ($0.36 per diluted share) in last year’s first quarter. EBITDA from continuing operations was $55.8 million, compared to adjusted EBITDA of $63.2 million last year.
The company said grain basis values for its Trade segment were driven sharply lower during the quarter due to the run-up in futures prices resulting from the war in Ukraine. Propane sales were also down from last year. The Trade segment recorded pretax income of $3.7 million and EBITDA of $20.8 million for the quarter, compared to adjusted pretax income of $14.3 million and adjusted EBITDA of $32.5 million in the first quarter of 2021.
The Plant Nutrient segment posted record pretax income of $10.7 million, compared to $8.5 million in 2021’s first quarter, with strong margins more than offsetting a decrease in volumes for most fertilizers. Plant Nutrient’s record first-quarter EBITDA was $18.8 million, compared to $16.0 million in last year’s first quarter.
“Fertilizer prices and farm income both remain very high, and while producers are feeling the impact of high input costs, commodity prices still support fertilizer application,” said President and CEO Pat Bowe. “We continue to receive good support from our suppliers in this time of tight stocks. Supply remains a factor in our industry, and market prices reflect reduced global stocks for most fertilizers and grains. Our teams are executing well and remain focused on customer needs and operational excellence.”
The Renewables segment reported pretax income attributable to the company of $5.5 million and EBITDA of $24.4 million in the quarter, compared to income of $2.9 million and EBITDA of $22.0 million in the 2021 first quarter. The Andersons cited improved margins at all ethanol facilities, strong feed and distiller corn oil values, and profitable third-party trading of ethanol, DDGs, and renewable feedstocks that more than doubled last year’s first-quarter results.
“We continue to believe that we are well-positioned in all businesses for the remainder of 2022,” Bowe said. “We are closely monitoring the weather-related planting delays in both corn and soybeans. While progress is being made, we are behind the five-year national average for this date and expect planting activities to ramp up quickly as soon as fields allow it.”
LSB Industries Inc., Oklahoma City, Okla., reported first-quarter net sales of $199 million and adjusted EBITDA of $101.1 million, compared with $98.1 million and $17.3 million, respectively, in last year’s first quarter. The company posted its highest quarterly EBITDA ever, driven by an adjusted EBITDA margin of 50.8 percent, compared with 17.6 million in the first quarter of 2021.
LCB said the year-over-year income and EBITDA improvements resulted primarily from higher selling prices, partially offset by higher natural gas feedstock prices and lower sales volumes, due in part to wet spring weather and delayed fertilizer purchases. Adjusted earnings per share (EPS) for the quarter was $0.69, compared with an EPS loss of $0.32 in last year’s first quarter.
“We delivered another quarter of record results and substantial growth in net sales and adjusted EBITDA and EPS,” said Mark Behrman, LSB President and CEO. “Our strong performance once again reflects increases in product selling prices coupled with the benefits of our successful commercial initiatives over the past several years, along with solid operations at our facilities.”
Behrman said conditions supporting the strong pricing environment are likely to continue for the balance of 2022 and 2023 due to robust nitrogen market dynamics, driven by limited global supply stemming from high natural gas prices in Europe, and higher demand due to low global grain stocks.
“Demand for fertilizers is expected to remain robust for the balance of 2022,” LSB said. “Corn prices are currently near record-high levels, and corn futures point to corn prices remaining at elevated levels throughout 2022 and through the first half of 2023. These trends should translate into strong farmer income and promote significant demand for fertilizers as farmers seek to maximize yield in order to capitalize on the anticipated strong pricing environment for corn.”
LSB said domestic natural gas prices are at their highest levels since 2008, with the Henry Hub spot gas price at approximately $8 per MMBtu. “Despite this increase in our feedstock cost, selling prices for our products have increased by a significant multiple of the increase in gas cost,” the company said. “We expect this to translate into continued strong margins over the course of the 2022.”
Behrman said the company is evaluating debottlenecking projects that can “significantly increase the production capacities at our facilities,” and is planning to move forward on one or more of these projects in the coming quarters. Behrman also highlighted LSB’s commitment to decarbonization activities, noting the company’s recent agreement with Lapis Energy to develop a CO2 capture and sequestration project at the El Dorado, Ark., facility (GM April 29, p. 1).
Regarding its industrial business, LSB said sales volumes of its nitric acid continue to increase driven by homebuilding and power generation. “The strength in the Tampa ammonia price also has positive implications for our industrial business, as a number of industrial chemical contracts are indexed to the Tampa ammonia price,” the company said.
LSB said it entered the first quarter with a lower level of high density ammonium nitrate (HDAN) inventory than in previous years as a result of increased nitric acid production and sales in the second half of 2021 in connection with a new nitric acid offtake agreement, reducing first-quarter sales volumes of HDAN relative to the 2021 first quarter.
LSB said its total liquidity as of March 31, 2022, was more than $400 million, including $343.6 million in cash and short-term investments and approximately $63 million of borrowing availability under its Working Capital Revolver. Total long-term debt was $716.5 million on March 31, compared to $527.6 million on Dec. 31, 2021.
“Our strong profitability led to another quarter of significant cash flow, further enhancing our balance sheet,” Behrman said. “Additionally, in March we completed a $200 million senior notes offering, taking advantage of the low interest rate environment in anticipation of a rising rates, bolstering our liquidity position and giving us greater financial flexibility to capitalize on organic growth opportunities and to pursue accretive acquisitions.”
Capital expenditures were approximately $8.3 million for the first quarter. LSB said full-year capital expenditures related to environmental, health, and safety, and plant investments are expected to be approximately $50 million, with another $15 million earmarked for identified growth initiatives.
| Avg Selling Price $/st | 1Q-22 | 1Q-21 | Percentage Change |
| UAN | 553 | 150 | 269 |
| AN & Nitric Acid | 438 | 221 | 98 |
| Ammonia | 961 | 312 | 208 |
| Other Factors | 1Q-22 | 1Q-21 | Percentage Change |
| Avg Nat Gas ($/mmBtu) | 4.74 | 3.15 | 50 |
| Tampa NH3 $/mt | 1,206 | 348 | 247 |
