California:
The SOP market firmed to $890-$900/st FOB Stockton, up $10-$15/st from last report, with reports of some suppliers considering a move to $920/st FOB in the near term. The posted price FOB Chico was quoted at the $960/st FOB level in late March.
California:
The SOP Magnesia market was up to $645/st FOB in California for the last confirmed offers on allocated tons.
California:
Potassium nitrate prices in California were reportedly up another $100/st, to $1,430/st FOB Stockton for bulk tons, $1,535/st FOB for bulk bags, and $1,555/st FOB for 50-pound bags.
Eastern Cornbelt:
Potassium thiosulfate pricing remained at $750/st FOB Terre Haute for the most recent offers.
California:
The potassium thiosulfate market moved from $700/st to the $725/st FOB level in California during the week, up from $685/st FOB in early March.
U.S. Gulf:
With water levels holding above the crucial 12-foot mark, restrictions remained in effect at New Orleans during the week. The river gauge was posted at 13.36 feet and holding on March 22. Forecasts predicted levels to fall back to the 12-foot mark on April 4.
Calcasieu Lock on March 22 kicked off a period of daytime travel shutdowns, limiting Monday through Thursday movements weekly between 7:00 a.m. and 6:00 p.m. The project was scheduled to run through May 19, with significant delays expected.
Daylight-hour movements were unavailable through Brazos Lock on weekdays due to ongoing lock maintenance. Navigation was unavailable Monday through Friday, between 7:00 a.m. and 7:00 p.m. Delays were reported up to nine hours during the week. Sources expected the closures to continue into May.
A Bayou Sorrel Bridge repair project is slated to limit daytime navigation through the lock until the end of May. Weekday shutdowns were scheduled to run from 7:00 a.m. to 11:00 a.m., and from 1:00 p.m. through 5:00 p.m., with normal transit hours returning on weekends.
Weekday delays were also reported at Bayou Sorrel Lock due to guidewall replacement work in effect through February 2023. Waits were reported in the 24-48 hour range through the week.
Bayou Chene travel remained unavailable during overnight hours due to floodgate construction. A Coast Guard notice described the waterway as shut nightly between 7:00 p.m. and 7:00 a.m., while navigation remained available during daytime hours, subject to a maximum 600 feet of length and 54 feet of width. Configurations measuring wider than 54 feet were required to utilize an assist vessel. Wait times were expected in the 6-12 hour range.
Shoaling at Miles 113-116 of the Atchafalaya River necessitated 10-foot draft limits through the area, according to Coast Guard information. Additionally, tows were capped at a maximum 600 feet, while lengths above 400 feet were advised to travel with an assist vessel. Widths were allowed up to 70 feet. Tows could bypass the restrictions entirely by detouring through the Port Allen Route.
Tows traveling through Algiers Lock without an assist tug continued to be subject to size limits, effectively capping tows at four dry barges or two 30,000 mt tankers per turn. Larger lockages remained possible with assistance, however. Waits were quoted up to 15.5 hours for the week.
Construction at the Belle Chasse Bridge was projected to cause intermittent travel delays for up to 12 hours at a time. The project is scheduled to conclude late this year.
Intermittent Port Allen Lock delays were quoted in the 10-19 hour range for the week. Boats traveling through Industrial Lock required up to 40 hours to pass, Corps data indicated. Bayou Boeuf Lock wait times were observed up to seven hours.
Mississippi River:
Persistent high water levels on the lower Mississippi River necessitated ongoing restrictions, effectively reducing both maximum barge counts and navigation speeds, as well as forcing overnight stoppages on downriver transit through a number of urban locations.
River levels were dropping at Memphis, Tenn., where the river gauge was seen crossing below the area’s 28-foot action stage on March 18. Vicksburg, Miss., levels, posted at an action-stage 41.62 feet and falling slowly on March 22, were expected to remain above action stage through at least April 5, while depths at Baton Rouge, La., were noted at a minor-flood 35.53 feet on March 22. The Baton Rouge gauge was predicted to fall out of flood stage on March 25, but remain above action stage through the entirety of the two-week forecast.
On the upper Mississippi River, Locks 1, 4-8, 12-13, and 5A remained closed to navigation on March 22, later than the industry’s previous March 17 tentative return to spring navigation. The locks were expected to open imminently, as conditions allow. Sources continued to express hope that barges could begin arriving in the St. Paul area by the end of the month.
Wait times were noted up to nine hours for the week at Mel Price Lock. Delays were reported at 4-6 hours through Lock 27 on March 21-22.
Illinois River:
A major repair and maintenance effort scheduled at Brandon Road Lock will impact navigation from May 9 through Sept. 8, Corps documents indicated. Travel will be confined to overnight hours and subject to 70-foot width restrictions between May 9 and Aug. 14, after which the lock will undergo a complete shutdown from Aug. 15 through Sept. 4. Nighttime transit and width restrictions will resume on Sept. 5-8, followed by a return to normal operation on Sept. 9. Considerable delays are predicted throughout the project schedule.
Marseilles Lock delays were noted up to 5.5 hours during the week. Wickets were reported in the lowered position at both Peoria Lock and LaGrange Lock, allowing tows to pass both sites via their nonlocking navigational passes.
Ohio River:
Despite elevated flows continuing throughout much of the Ohio River system, rapidly improving conditions were noted to positively impact travel during the week.
Primary chamber repairs at Emsworth Lock forced passage through the site’s auxiliary chamber. Lockages were limited to a single barge per pass, resulting in wait times in a reported 3-6 day range during the week, firming from 2-6 days noted previously. The project is set to run through April 16.
Daylight-hour navigation is unavailable at Cannelton Lock on Wednesdays and Thursdays through May 26 due to a repair project that kicked off on Jan. 26. A proposed subsequent maintenance and repair project would limit Cannelton Lock main chamber availability from July 5 through Nov. 11, prompting vessels to transit through the secondary chamber.
Maintenance to the Dashields Lock main chamber scheduled for March 7-31 was noted routing traffic through the site’s auxiliary chamber. Following the main chamber project’s conclusion, the auxiliary chamber is scheduled to close for maintenance on April 1-22. Corps data showed Dashields wait times up to 56 hours for the week.
Repairs and maintenance scheduled for May 2 through June 22 at Belleville Lock is projected to limit access to the site’s main chamber. Passage will continue to be available through the auxiliary chamber while work is underway.
A main chamber maintenance operation proposed to run from July 5 through Oct. 8 would require vessels transiting Hannibal Lock to use of the auxiliary chamber.
Wilson Lock, located at the Tennessee River’s Mile 259.4, is undergoing main chamber maintenance through April 28, forcing navigation through the secondary chamber. The main chamber was reportedly open for use on March 18-23 to pass assembled traffic, dropping delays down to the 18-30 hour range from recent reports of 5-8 days.
Most Kentucky Lock delays were quoted in the 5-10 hour range, while a handful of intermittent waits were observed in up to 14-18 hours. Wait times were previously noted at seven hours.
On the Cumberland River, southbound traffic was paused during the week at Mile 2 due to a sunken barge in the area. Normal navigation was expected to resume in the week ahead.
Barkley Lock was closed to daytime navigation on March 21-27 for planned Bio-Acoustic Fish Fence (BAFF) maintenance and inspections. Detours were available via Barkley Lock and Kentucky Lock.
Miter gate machinery repairs proposed for Cheatham Lock would limit navigation through the site between May 31 and Aug. 5. The Corps was expected to schedule intermittent opening windows to limit vessel backlogs.
Arkansas River:
A maintenance and repair project in the works at Norrell Lock will block navigation daily between 7:00 a.m. and 7:00 p.m. for a series of 10-day chunks, scheduled through the end of the year. The closures are slated for June 1-11; June 22-July 21; Aug. 1-10; Aug. 21-Sept. 21; Sept. 3-Oct. 9; Oct. 20-Nov. 18; Nov. 29-Dec. 23; and Jan. 3-31, 2023.
NeuAG LLC, The Woodlands, Texas, announced the addition of Grace Ouwenga to its sales team. The company said she brings experience in procurement, customer service, and sales. She will be Account Manager, focusing on market growth in the Central and Midwest Regions, reporting to Alan Goldsby.
Nevada Zinc Corp., Toronto, on March 14 announced the appointment of Igor Danyliuk to the Board of Directors. The company said he brings over 40 years of capital markets experience, having worked on Bay Street and Wall Street as an investment banker, a top-ranked equity research analyst, and most recently as Head of Research for one of Canada’s major banks.
He holds an MBA from Harvard Business School and a BASc (Engineering Science) and MASc (Chemical Engineering and Applied Chemistry) from The University of Toronto.
Nevada Zinc is an exploration and development company focused on its wholly-owned Lone Mountain zinc project in central Nevada, with the strategic objective of producing zinc-based products, including fertilizers, animal feed, and chemicals.
In July 2020, the company entered into a Collaboration Agreement with Cameron Chemicals Inc., Virginia Beach, Va., a U.S. producer and distributor of granular micronutrients to the agricultural, turf, and horticultural industries with manufacturing facilities in Washington, Virginia, and Michigan.
Under the agreement, the two would work together to establish a range of zinc-based micronutrient fertilizers to be produced by the company and marketed by Cameron through its distribution networks. In March 2021, Nevada Zinc commenced a multiphase pilot plant program to produce zinc sulfate and further de-risk and advance the Lone Mountain high-grade zinc carbonate-oxide deposit.
Energy industry service provider Petrofac, Saint Helier, N.J., said on March 15 it will assess the feasibility of building a hydrogen-to-ammonia plant powered by solar and wind energy in Egypt with in-country subsidiary of Egypt-focused Mediterranean Energy Partners (MEP). The proposed facility at Ain Sokhna port on the Gulf of Suez would produce 125,000 mt/y for export.
The U.S. Bureau of Land Management (BLM) has recognized the conservation efforts of Itafos Conda Phosphate Operations near Soda Springs, Idaho, by awarding Conda a leadership partner award during the 87th North American Wildlife and Natural Resources Conference.
The award was given March 10 to the Southeast Idaho Habitat Mitigation Fund developed and financed by Conda. It recognizes external organizations or individuals representing a conservation organization for outstanding partnership in developing and implementing conservation programs and activities that directly benefit fish, wildlife, and/or native plants on public lands.
In 2017, Conda gave $1.2 million to the fund to mitigate impacts of its Rasmussen Valley phosphate mine. Its contribution led to an additional investment of $3.5 million in federal, state, and private funds for a total of $4.7 million to further enhance wildlife habitat projects.
In January 2018, Itafos acquired the Conda Phosphate Operations in Southeast Idaho’s Caribou County for $100 million from Agrium Inc., which now is part of Nutrien Ltd., Saskatoon. Phosphate mines in the region generate 22 percent of the nation’s phosphate supply and 2 percent of the world’s supply.
The USDA announced on March 11 that it will make available $250 million through a new grant program this summer to support independent, innovative, and sustainable American fertilizer production to supply American farmers. The grants will go to production outside the dominant fertilizer suppliers, so as to increase competition.
“Recent supply chain disruptions, from the global pandemic to Putin’s unprovoked war against Ukraine, have shown just how important it is to invest in this crucial link in the agricultural supply chain here at home,” said Agriculture Secretary Tom Vilsack. “The planned investment is one example of many Biden-Harris Administration initiatives to bring production and jobs back to the United States, promote competition, and support American goods and services.
“As the President said [at the State of the Union], we are working to rebuild the economy towards resilience, security, and sustainability, and this support to provide domestic, sustainable, and independent choices for fertilizer supplies is part of that effort,” he continued. “In addition to the jobs, lower costs, and more reliable supply, increased investment in the domestic fertilizer industry will help address climate change by reducing the greenhouse gas emissions associated with transportation, while also fostering more sustainable production methods and more precise application.”
Details on the application process will be announced in the summer of 2022, with the first awards expected before the end of 2022.
USDA said it will use funds from the Commodity Credit Corp. (CCC) set aside in September for market disruptions to develop a grant program that provides “gap” financing to bring new, independent domestic production capacity online – similar to the recently announced meat and poultry grants that are designed to promote competition and resilience in that sector.
In addition, to address growing competition concerns, USDA will launch a public inquiry seeking information regarding seeds and agricultural inputs, fertilizer, and retail markets.
USDA is requesting comments and information from the public about the impacts of concentration and market power in fertilizer, seeds and other agricultural inputs, and retail. With these Requests for Information (RFIs), USDA is also seeking information on competition and market access for farmers and ranchers, new and growing market competitors – especially small and medium-sized enterprises – and more about the context for these markets for farmers.
The inquiry stems from the July 9, 2021, Executive Order on “Promoting Competition in the American Economy,” which created a White House Competition Council and directed federal agency actions to enhance fairness and competition across America’s economy.
“Concentrated market structures and potentially anticompetitive practices leave America’s farmers, businesses, and consumers facing higher costs, fewer choices, and less control about where to buy and sell, and reduced innovation – ultimately making it harder for those who grow our food to survive,” said Vilsack. “As I talk to farmers, ranchers, and agriculture and food companies about the recent market challenges, I hear significant concerns about whether large companies along the supply chain are taking advantage of the situation by increasing profits – not just responding to supply and demand or passing along the costs.”
USDA will seek information specifically on Fertilizer; Seed, and agricultural inputs, in particular as they relate to the intellectual property system; and Retail, including access to retail through wholesale and distribution markets.
The comment period will be open for 60 days once the requests for information are published in the Federal Register, and upon which time comments can be submitted to www.regulations.gov. In the interim, the requests for information will be made available at www.ams.usda.gov/about-ams/fair-competitive/rfi.
USDA will use the comments received to develop reports mandated under the Competition E.O., and to develop policies relating to fair and competitive markets, supply chain resiliency, pandemic response, local and regional food systems, and other areas.
Subsequent actions may range from new grant and loan programs to additional rules and regulations under the Packers and Stockyards Act of 1921 and other relevant laws to increase fairness and competition in American agricultural markets.
The Fertilizer Institute (TFI) said on March 15 that it welcomes initiatives to strengthen domestic fertilizer production, including USDA’s $250 million grant program. However, it said it is important to recognize the innovative work undertaken by companies in the U.S. market, who have made a strong comeback from the days of high natural gas prices to leverage the shale gas revolution.
“We have a more robust U.S. fertilizer industry than we have seen in two decades,” said TFI. “By enacting policies that encourage safe, abundant, and affordable supplies of natural gas, which is the chief feedstock for nitrogen production, ensuring that permitting of production plants is streamlined and adding phosphate and potash to the Department of the Interior’s Critical Minerals list, policymakers can also support this vital industry.”
TFI also noted the fertilizer industry’s investment in innovation has been longstanding. Most recently, TFI partnered with USDA, EPA, and other stakeholders on the Next Gen Fertilizer Challenges (https://www.epa.gov/innovation/next-gen-fertilizer-challenges). It said the challenges aim to accelerate the development of innovative fertilizer product technologies and increase the use of existing enhanced efficiency fertilizers (EEFs) that maintain or increase crop yields and reduce environmental impacts to air, land, and water.
TFI said it looks forward to providing USDA with data for its RFI. It said when compared to peer sectors around the world, the U.S. fertilizer industry is among the most competitive and environmentally advanced.
