California:
The SOP market in California remained at $750-$760/st FOB, with the low confirmed at Stockton.
Pacific Northwest:
SOP pricing in the Pacific Northwest was pegged at $800-$825/st FOB in early May.
California:
The SOP market in California remained at $750-$760/st FOB, with the low confirmed at Stockton.
Pacific Northwest:
SOP pricing in the Pacific Northwest was pegged at $800-$825/st FOB in early May.
California:
The SOP Magnesia market dropped to $505-$520/st FOB in California, down from the previous $565-$575/st FOB range.
Pacific Northwest:
SOP Magnesia was quoted at $525-$555/st FOB in the Pacific Northwest, depending on grade.
California:
New potassium nitrate prices in California slipped to $1,285/st FOB Stockton for bulk tons, $1,390/st FOB for bulk bags, and $1,410/st FOB for 50-pound bags, down a full $100/st from last report.
Eastern Cornbelt:
Dry, windy conditions in Illinois caused a massive dust storm on May 1, triggering a fiery 72-vehicle pileup on Interstate 55 south of Springfield, Ill., that killed seven people and injured more than 30 others. I-55 was closed for nearly 20 hours as a result.
Warm, sunny weather pushed temperatures into the 70s across Indiana during the week. Although parts of the state were expecting scattered rain on May 5, highs near 80 were in the weekend forecast.
The week got off to a cold start in Ohio, with reports of a rain/snow mix across much of the state and temperatures staying in the 30s and 40s. Warmer weather was on tap as the week progressed, however, with highs reaching the 60s and 70s late in the week.
Planting progress continued to track ahead of the five-year average for all crops, thanks to favorable weather and field conditions in late April. Corn planting as of April 30 was 40% complete in Illinois, 20% in Indiana, and 10% in Ohio, with soybean planting estimated at 39% complete in Illinois, 18% in Indiana, and 16% in Ohio. Ohio growers also had 71% of the oats crop planted by that date.
Western Cornbelt:
Highs in the 70s and 80s were common across Iowa and Nebraska as the week progressed, creating favorable conditions for planting and spring fertilizer application. Thunderstorms and spotty showers were likely in both states by the weekend, along with potentially strong winds.
Widespread rain showers and thunderstorms were reported in the Kansas City, Mo., area on May 4, with areas south of Interstate 70 and into the Ozarks expecting the greatest rainfall totals. Temperatures were expected to rise from the 70s at midweek to near 90 by the coming weekend.
Corn planting as of April 30 had progressed to 29% complete in Iowa, 30% in Nebraska, and 80% in Missouri, with Missouri tracking well ahead of its 41% five-year average. Soybean planting was also ahead of schedule at 34% complete in Missouri and 16% in Nebraska and Iowa, while Missouri’s rice and cotton planting had progressed to 73% and 5%, respectively.
California:
After near record-setting heat in the upper-80s and 90s in late April, California was bracing for another round of cool, wet weather in early May, including warnings of heavy rain in the valleys and more than a foot of snow in the mountains.
Highs in Redding topped out in the 60s at midweek, while parts of Southern California were expecting up to an inch of rain by May 4. Winter weather advisories were in effect for the San Bernardino County and San Gabriel mountains, where forecasts warned of up to 14 inches of snow by the end of the week.
California growers had 85% of the cotton crop planted by April 30, along with just 5% of the rice crop. While cotton planting was tracking well ahead of the average pace, rice planting lagged slightly in the state.
Pacific Northwest:
Unseasonably warm temperatures prompted flood warnings from snowmelt in parts of Idaho and Montana during the week, with highs reaching the 80s in both states. Cooler weather was on tap for the weekend, however, along with scattered showers.
Cool, wet weather also moved into parts of Oregon and western Washington during the week, particularly in the Cascades and the eastern Willamette Valley. Eastern Washington, by contrast, experienced hot, dry weather during the week, with Spokane notching a record high of 82 degrees on April 30.
The warmer weather finally allowed growers to get in the field in late April. The planting of spring wheat and barley had progressed to 55-74% complete in Washington by April 30, compared with 45-47% in Idaho and just 12-14% in Montana. All three states were trailing their average progress by that date. Idaho growers also had 71% of the sugar beets planted by April 30.
Western Canada:
After a colder-than-normal March and April across the Prairies, May got off to a summery start with multiple heat records posted across the region.
Manitoba posted highs in the mid- to upper-teens C during the week, with 20 C highs expected by the coming weekend. Regina, Sask., reached 24 C on May 2 and 28 C on May 3, while at least 10 daily record highs were posted across British Columbia at midweek, including 30 C in Osoyoos.
The sudden onset of summer also prompted numerous wildfire warnings and fire bans across Saskatchewan and Alberta during the week, with more than 50 active wildfires burning in Alberta in early May.
Spring fertilizer application was finally moving into high gear across the region, with several sources reporting that progress in their trade areas was a full 10 days behind normal.
“With the big snowstorm that hit southern Saskatchewan and Manitoba, we’re seeing central Saskatchewan and Manitoba starting to seed ahead of the south, which doesn’t happen very often,” said one source. “Fields are still pretty soft down there with all the excess moisture.”
US Gulf:
Algiers Lock maintenance, previously expected to conclude on May 4, was extended through May 26, keeping the lock shut to navigation from 6:30 a.m. to 6:30 p.m., Monday through Saturday. Waits were recorded as high as 23 hours during the week, down from 53 hours reported previously.
Work at Colorado Lock, in progress since December 2022, was extended through an estimated June 2, roughly five weeks beyond the project’s previously-expected April 28 end date. Travel was unavailable daily between 7:00 a.m. and 7:00 p.m. Daytime delays were noted in a wide 8-23 hour range.
Sources expected intermittent shutdowns at the Morgan City Railroad Bridge, located at the West Canal’s Mile 121, to continue through the end of June. Repairs at Leland Bowman Lock will require a complete shutdown on May 9-12, and again on May 16-18, sources said.
Work underway since April 18 to repair the Bayou Boeuf Lock north chamber guidewall was expected to pause on May 5, as emergency repairs needed on the Lower Mississippi River will force the Bayou Boeuf work crew to temporarily relocate to the Vicksburg area. The Bayou Boeuf project, responsible for weekday navigation outages between 7:00 a.m. and 4:00 p.m., was previously scheduled through May 19, but will now likely be extended. Delays were noted up to nine hours through the week.
Port Allen Lock wait times were reported up to 51 hours, while Bayou Sorrel Lock delays topped out around 11 hours. Boats waited up to 36 hours to transit Industrial Lock. Brazos Lock waits topped out at seven hours on May 3.
Mississippi River:
Flooding continued to impact navigation on the upper river during the week. Locks 2-5 reopened to navigation on May 1, although numerous locations, including Lock 1, Locks 6-7, and Locks 9-20, remained shut on May 3.
Upper river transit was likely to remain effectively nonexistent until the second week of May, when some expected transport to resume in advance of a prospective Lock 17 reopening, tentatively expected on or around May 15. Lock 9 could reopen as early as May 3, sources suggested, followed by Lock 20 on May 6.
The river gauge at St. Paul was recorded at a minor-flood 14.4 feet and falling on May 3, after registering at major-floor levels one week earlier.
The Dubuque gauge remained above the 20.5-foot major-flood threshold at 21.1 feet on May 3, and was predicted to hold at moderate-flood stage through at least May 9. A recent 22.84-foot reading, observed on April 30 at the gauge, would represent Dubuque’s third-highest depth reading on record, if confirmed.
On the lower river, revetment maintenance reported in progress at Mile 507 was likely to delay travel daily between 6:00 a.m. and 6:00 p.m.
Illinois River:
Falling water levels on the Illinois River prompted lock operators to raise wickets at Peoria Lock and LaGrange Lock, leading to delays of seven hours and six hours, respectively.
Brandon Road Lock, Dresden Island Lock, and Marseilles Lock are scheduled to shut completely on June 1 for approximately 120 days, effectively closing the Illinois River to commercial navigation.
Dresden Island Lock delays were counted up to nine hours through the week, while tows waited 4-10 hours to pass Marseilles Lock. Wait times at Starved Rock Lock were also heard topping out at 10 hours.
Ohio River:
Floating mooring repairs at the JT Meyers Lock main chamber were reported underway through Aug. 20, triggering intermittent shutdowns. The site’s auxiliary chamber is due to close Aug. 21 through Sept. 10 for repairs to the secondary miter gate, followed by an additional main chamber closure between Sept. 11 and Nov. 17.
The Dashields Lock main chamber is shut April 24 through May 27 for repairs and maintenance, complicating travel to and from the Allegheny and Monongahela Rivers. Corps data showed delays as high as 29 hours on May 2-3.
The auxiliary chamber at Melville Lock is shut April 17 through Aug. 4 for maintenance. Miter gate machinery repairs will block travel through the McAlpine Lock north chamber May 15 through June 15, leaving transit available solely through the south chamber.
The Smithland Lock land chamber will close Sept. 22 through Oct. 22 for machinery repairs, sources said. Planned repairs will shut the Greenup Lock primary chamber July 5 through Aug. 14, forcing detours through the secondary chamber. Dam gate repairs set to run July 10 through Sept. 15 at Winfield Lock are not currently expected to impact navigation.
Tennessee River’s Guntersville Lock was likely to see intermittent daytime shutdowns on May 1-11 for valve repair, sources indicated. Kentucky Lock delays were quoted up to 34 hours during the week. Intermittent 12-27 hour waits were reported at Wilson Lock.
The O’Leary Fire Department and Royal Canadian Mounted Police responded to a fire at Cavendish Agri Services in O’Leary, Prince Edward Island, around 10:35 p.m. on Monday, May 1. Fire officials quickly determined that the burning materials were not an explosion risk and could be contained.
There was no extended threat to the public, and no injuries were reported. However, some local residents left the area until they received assurances there would be no explosion, according to the SaltWire Network.
John MacKinnon, General Manager of J.D. Irving Ltd., the parent company of Cavendish Agri Services, was quoted by SaltWire as saying one of the plant’s storage facilities was a complete loss, and that the location’s main mixing facility and business offices were not damaged.
The fire’s cause is unknown and the Fire Marshal is investigating.
AdvanSix announced on May 5 that it plans to expand granular ammonium sulfate capacity by 200,000 st/y at its Hopewell, Va., location. The project has been dubbed SUSTAIN (Sustainable US Sulfate to Accelerate Increased Nutrition).
SUSTAIN will include a multi-year series of capital investments focused on the planned expansion of granular ammonium sulfate production. It is expected to increase granular ammonium sulfate production, predominantly through increased conversion, by nearly 20% and improve customer logistics.
The project is targeting no net increase in energy consumption or emissions, an anticipated reduction of total water usage at the site by approximately 10%, and a reduction of nutrient discharges.
AdvanSix said the project will ensure that the premium granular product variety required by the US market can be produced domestically, increasing resiliency in the local fertilizer market.
In the meantime, AdvanSix also said on May 5 that negotiations with striking workers at the Hopewell South facility remain ongoing.
“From the beginning of negotiations with the Hopewell South bargaining unit and associated economic strike, we have endeavored to reach a contract through a transparent and good faith bargaining process to address the various needs brought forth by the union negotiations’ team,” said AdvanSix President and CEO Erin Kane. “Our proposals maintain a market-based, role-specific wage approach designed to ensure we are providing competitive wages to our employees intended to improve attraction, retention, and development of our workforce in order to support long-term, sustainable growth.
“Ahead of the bargaining process, and consistent with historical practice, we developed robust contingency plans in the event of a work stoppage or strike,” she added. “I’d like to thank our trained salary and contingent contract workers who have demonstrated an unwavering commitment to our customers and key stakeholders to ensure safe, stable, and sustainable operations over the past several weeks. All parties were back at the bargaining table this week and we remain committed to continuing to bargain in good faith to reach a resolution to this situation.”
AdvanSix announced the strike on April 7. It affects approximately 340 workers. The bargaining unit consists of the International Chemical Workers Union Council/the United Food and Commercial Workers, Local 591-C, the International Brotherhood of Electrical Workers, Local 666, the International Association of Machinists and Aerospace Workers, Local No. 10, and the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry, Local 851.
Fortescue Metals Group, the Australian iron ore producer and aspiring green energy provider, has given details on five prospective green hydrogen and ammonia projects that it hopes to confirm this year. The company said it is looking in Arizona and Texas to build hydrogen plants to supply domestic “mobility sector,” Fortescue Future Industries (FFI) CEO Mark Hutchinson said in a media and analyst call on April 24, following its quarterly production update
In Brazil, FFI is in the prefeasibility stage for a green ammonia plant, with the product probably exported to Europe.
In Kenya, FFI plans a 300 megawatt green ammonia plant for domestic use as fertilizer.
In Norway, FFI is planning a 300 megawatt green ammonia plant for export to Europe.
In Australia, it is planning a green ammonia plant in Brisbane for domestic use and export to Asian markets.
FFI said none of the projects, however, have reached a final investment decision (FID), but the company is “working really hard to make sure we get to five projects” to FID “this calendar year,” said Hutchinson.
CF Industries Holdings Inc. and renewable energy generator NextEra Energy Resources LLC, Juno Beach, Fla., on April 24 announced a Memorandum of Understanding for a joint venture to develop a zero-carbon-intensity hydrogen project at CF’s Verdigris Complex in Oklahoma. CF would be the sole offtaker of 100% of hydrogen output, using it to produce up to 100,000 st/y of zero-carbon green ammonia, which would be facilitated by debottlenecking Verdigris’ ammonia plants.
The proposed project was included in the funding application submitted to the US Department of Energy this month by the HALO Hydrogen Hub, a three-state effort established by Arkansas, Louisiana, and Oklahoma to compete for funding from the DOE’s regional clean hydrogen hub program. CF and NextEra anticipate that DOE support will be a key aspect of their evaluation process. A final investment decision has not been made for this project.
The project envisions a jointly-owned 100-megawatt (MW) electrolysis plant at the Verdigris Complex that would be powered by a dedicated 450-MW renewable energy facility developed by NextEra.
“The use of decarbonized ammonia in agriculture offers the most certain, quantifiable, and verifiable way to reduce the lifecycle carbon footprint of the food we eat,” said Tony Will, CF President and CEO. “We are pleased to work with NextEra Energy Resources to explore how best green hydrogen could help accelerate the adoption of low- and zero-carbon ammonia and ammonia-derived nitrogen fertilizers in the United States and contribute to decarbonizing the agriculture supply chain.”
“NextEra Energy Resources is committed to leading the decarbonization of the American economy, and the agriculture industry is fundamental to that goal,” said Rebecca Kujawa, NextEra President and CEO. “We are honored to work with CF Industries to bring green hydrogen production to its Verdigris Complex while also creating additional jobs and economic benefits for the state of Oklahoma.”
CF is already constructing North America’s first commercial scale green ammonia capacity at its Donaldsonville Complex, enabling up to 20,000 st/y of green ammonia production beginning in 2024 (GM Oct. 30, 2020), and it is pursuing various blue ammonia opportunities (GM March 3, 2023).