All posts by mickeybarb@charter.net

Ammonium Thiosulfate

Amthio, Eastern Cornbelt, Great Lakes, Market Watch, Northern Plains, Specialty, Western Cornbelt

Eastern Cornbelt:

Ammonium thiosulfate supply remained extremely tight in the Eastern Cornbelt, with reports of one supplier suspending orders at two of its production plants in mid-April.

The regional market was quoted at $300-$330/st FOB, up another $5/st from last week, with the high confirmed at Burns Harbor for limited tons. Amthio pricing at Cincinnati remained firmly at the $320-$325/st FOB level. May/June rail-DEL offers ranged from $300-$340/st in the region, depending on location.

Western Cornbelt:

The ammonium thiosulfate market was quoted at $300-$320/st FOB in the Western Cornbelt, up another $10/st from last report, with continued reports of very tight supply.

Northern Plains:

Ammonium thiosulfate pricing was reported at $300-$310/st FOB in the North Dakota market, up $15-$25/st from last report.

Great Lakes:

Ammonium thiosulfate pricing covered a wide range at $260-$330/st FOB in the region, with the low reported at Webberville. “Supply is very tight,” said one regional contact. “I’m sure we will see outages.”

Crops/Weather

Crops/Weather, Eastern Cornbelt, Great Lakes, Market Watch, Northeast, Northern Plains, Western Cornbelt

Eastern Cornbelt:

Clear skies with highs in the 50s and 60s were reported in southern and central Illinois at midweek after some rain delays earlier in the week. “We will be wide open again tomorrow,” said one Illinois contact on April 14.

Highs across central Indiana were also reported in the low-60s at midweek, but cool temperatures and an increased chance of rain were on tap for the coming weekend. Wet weather was also reported in northern Ohio as the week advanced, along with temperatures that struggled to hit the 50-degree mark.

Corn planting was off to a good start in the region, with progress as of April 11 estimated at 5 percent complete in Illinois and 2 percent in Ohio and Indiana. Ohio growers also had fully 40 percent of the oat crop seeded by that date, well ahead of the 13 percent five-year average.

Western Cornbelt:

Cool, wet weather limited fieldwork in much of the Western Cornbelt at mid-month. One Iowa contact said 2-5 inches of rain over the previous weekend put a stop to fertilizer applications during the week. Although sunshine had returned by midweek, 50-degree temperatures slowed the drying process, he said.

Nebraska was bracing for some nasty weather as the week progressed. A powerful system was expected to bring 6-12 inches of snow to the Nebraska Panhandle and southeastern Wyoming on April 16, with eastern areas of Nebraska anticipating steady rain late in the week.

Wet weather was also in store for much of central and western Missouri over the coming weekend, but precipitation totals were expected to remain under an inch in most locations.

Corn planting as of April 11 was 8 percent complete in Missouri and 1 percent in Iowa, with Missouri’s rice crop 8 percent planted by that date. USDA said 37-40 percent of the oat crop in Iowa and Nebraska was already seeded by April 11, with both states tracking ahead of their five-year averages.

Northern Plains:

Parts of the Northern Plains picked up some needed precipitation during the week, with reports of spotty rains and 1-3 inches of snow in northeastern North Dakota and northwestern Minnesota on April 13. The region also experienced cold temperatures at mid-month, with lows in North Dakota dropping to the mid-20s and highs barley hitting the low-50s.

Worsening drought conditions were reported in the Dakotas, with severe-to-extreme drought covering nearly all of North Dakota and a large section of northwestern South Dakota as of April 8. The dry conditions allowed an early start to spring fieldwork, but some growers were forced to stop and wait for additional moisture at mid-month.

“We are very dry,” said one North Dakota source. “Some have started up, but most are stopped and waiting for rain/snow. We are getting some now, not a lot but better than nothing. Some will now give it a try toward the end of the week or maybe next week.”

“There is some movement, but we’re not in full swing yet due to dry conditions,” added another regional contact.

USDA reported that North Dakota growers had two percent of the corn planted by April 11, while the planting of sugar beets had progressed to 5 percent in North Dakota and 1 percent in Minnesota.

Fully 19-20 percent of the oat crop was planted in Minnesota and South Dakota by April 11, compared with 2 percent in North Dakota. Barley planting was estimated at 3 percent complete in Minnesota and North Dakota, with spring wheat planting reported at 7-8 percent in Minnesota and North Dakota and fully 30 percent in South Dakota. Small grains planting was ahead of the average pace for all crops in the region.

Great Lakes:

Cold, wet weather was reported across most of Michigan at midweek. After dry weather earlier in April and a rapid start to spring planting and fieldwork, much of the state was hit with a soaking rain on April 10, followed by another system on April 14-15 that left 2-5 inches of snow in the Upper Peninsula and 1-3 inches of accumulation in northern areas of the Lower Peninsula.

Chilly weather was also reported in Wisconsin, with highs down in the 40s at midweek and plenty of rain in northern areas of the state. Highs were expected to reach the 50s again across much of Wisconsin by the weekend.

Michigan growers had 1 percent of the corn and fully 46 percent of the sugar beet crop planted by April 11, with sugar beets tracking significantly ahead of the 3 percent five-year average. Oat planting in Wisconsin was estimated at 19 percent complete by that date, also well ahead of the 5 percent five-year average.

“Spring is progressing here way ahead of normal. The dry winter and early loss of snow has caused soils to warm up fast,” said one Michigan contact. “Many have all the fertilizer spread and are switching to planting. We are seeing product outages everywhere on anything people want to apply.”

Northeast:

Temperatures across New England climbed into the 60s early in the week, but a strong weather system was expected to bring up to an inch of rain on April 16, along with cooler temperatures in the 40s and 50s. Forecasts warned that higher elevations in New England could pick up as much as 12 inches of snow by the weekend.

Temperatures across New York and central Pennsylvania were also reported in the 50s at midweek, with scattered rain and strong winds in many locations.

In Maryland, thunderstorms swept through the Baltimore region on April 11, prompting a severe thunderstorm warning after a weekend of sunshine and warm temperatures. Wind gusts up to 60 mph were reported near Mount Airy, along with scattered hail and heavy rain.

Sources reported little in the way of spring planting in the Northeast in mid-April, with only spotty field preparation due to wet conditions.

Transportation

Arkansas River, Illinois River, Mississippi RIver, Ohio River, Transportation, U.S. Gulf

U.S. Gulf:

Bayou Sorrel Lock is scheduled to shut to daytime movements from April 21 through May 15, blocking traffic daily from 7:00 a.m. to 6:00 p.m. Sources predicted 24-48 hour delays.

Sources reported a number of projects slowing navigation in the Port Allen Route for the week. In addition to upcoming Bayou Sorrel Lock repairs, ongoing stoppages at the Gross Tete Bridge limited navigation to just four hours a day through May 17, from 10:00 a.m. to 12:00 p.m., and 10:00 p.m. to 12:00 a.m.

Towing restrictions in place at Port Allen Lock, the result of guidewall damage suffered during a January barge collision, also slowed movements on the Port Allen Route. West-moving tows with two barges or more were required to utilize an assist vessel on all lockages, while locking was available without assistance for westbound vessels with one barge or less in tow. All eastbound traffic measuring longer than 650 feet was required to use an assist vessel. Wait times for the week were noted in a wide 8-21 hour range.

Harvey Lock was reported closed to navigation through May 21 due to ongoing repairs to the nearby 4th Street Bridge, prompting detours through Algiers Lock. The added traffic, along with high water levels reported in the area, combined to push Algiers delays as high as 48 hours for the week, with 32 tows reportedly queued to lock on April 13.

Restrictions persisted at Algiers Lock, sources said, limiting unassisted tows with widths above 60 feet to lengths of 600 feet. Vessels with tows narrower than 60 feet were permitted up to 700 feet long, essentially restricting unassisted lockages to four standard barges or two 30,000 mt tankers per turn. Longer tows were possible with the use of an assist vessel, sources said. Most Algiers Lock delays were reported in the 24-50 hour range for the week.

Due to high water in the Gulf and lower Mississippi River, tow lengths were reduced by 5-10 barges on travel above New Orleans. Tows are typically permitted up to 25 barges through the region.

River levels were reported at a moderate-flood 38.35 feet at Baton Rouge, La., on April 13. An NWS Flood Warning dated April 12 for the Mississippi River at Donaldsonville, La., Baton Rouge, and Red River Landing, Miss., was slated to expire on April 27. Storm systems moving through the Gulf and canals were projected to impact movements on April 13-19.

Maintenance and repair operations concluded at Colorado Lock on April 9, normalizing movements through the area. Industrial Lock delays were noted up to 48 hours for the week, rising from 8-17 hours reported previously. Sources quoted Brazos Lock passages up to 26.5 hours on April 11-12.

Mississippi River:

High water levels were exacerbated by weekend rains, sources said, triggering towing restrictions at numerous locations on the Mississippi River during the week.

On the upper river, sources described maximum tow lengths capped at nine barges between St. Paul and Prairie du Chien, while boats running from Prairie du Chien to St. Louis were limited to 12 barges per tow.

Depths clocked at an action-stage 28.91 feet at St. Louis prompted ongoing restrictions to Cairo, Ill., reducing barge counts by five units. Additionally, daylight-hour restrictions were reported in place on travel through bridges at St. Louis and Thebes, Ill.

Below Cairo, tows were reduced by 5-10 barges from the typical 25-barge limit. Water levels at Vicksburg, Miss., were posted at a minor-flood 44.65 feet and falling slowly on April 14, with forecasts predicting a move below the 35-foot action stage on April 26-27. Tows were limited to daytime-only movements through bridges at Memphis, Tenn., Vicksburg, and Baton Rouge. The NWS posted a Flood Warning for Vicksburg and Natchez, Miss., on April 13.

Overnight travel through the railroad bridge at the upper river’s Mile 699 was reportedly unavailable for the week due to a shortage of lock operators.

Lock 2 will see a number of daytime 4-12 hour closures in July for miter gate installation. Daylight-hour shutdowns were expected at Lock 25 in July and August for guidewall repairs. Delays for the week were noted at five hours at Lock 18, while boats passing Lock 22 reported eight-hour waits on April 14.

Illinois River:

Heavy weekend rains reversed a short-lived resumption of lockages through Peoria Lock during the week, sources said. Wickets remained down at LaGrange Lock.

Ohio River:

Meldahl Lock primary chamber machinery repairs previously scheduled to run from April 12 through June 11 were delayed, sources said. Updated dates for the project were expected to be announced soon. Vessels will pass through the secondary chamber while work is underway, with waits expected.

The main chamber at Cannelton Lock is slated to close from June 21 through Nov. 19. Tows will pass the site through the secondary chamber, effecting considerable delays.

The Markland Lock auxiliary chamber is projected to remain shut through Oct. 29 due to cracks in the miter gate. Locking has remained available through the primary chamber since the start of the shutdown in early 2020. The secondary chamber at New Cumberland Lock is closed through June 10 for repairs and maintenance.

Sources reported lowered wickets at Olmsted Lock due to high water, allowing movements through the nonlocking navigational pass.

On the Tennessee River, the Corps announced a planned main chamber shutdown at Wilson Lock for repairs, slated for May 4-13. Transit will remain available through the secondary chamber. Wait times at Kentucky Lock were quoted up to 19 hours during the week.

Bio-acoustic fish fence (BAFF) repair at the Cumberland River’s Cheatham Lock were rescheduled for May 10 through July 15. As with the prior schedule, the Corps is expected to plan three temporary openings during the closure to pass waiting traffic.

Arkansas River:

Restrictions continued to be reported on the Arkansas River due to elevated water levels, slashing maximum tow lengths from 12 barges to nine. The reductions were likely to persist into late April, sources said.

David D. Terry Lock navigation is scheduled to be completely unavailable from Aug. 27 through Sept. 9 for dewatering and repairs. Ahead of the shutdown, intermittent delays are expected on Aug. 16-26.

Winfield Solutions Fined for Clean Air Act Violation

News, News Briefs

The U.S. Environmental Protection Agency (EPA) announced on April 15 that it has reached a settlement with Winfield Solutions LLC, doing business as Omnium, to resolve an alleged Clean Air Act violation at the company’s fertilizer manufacturing and distribution facility in Dodge City, Kan. As part of the settlement, EPA said Winfield will pay a $83,975 civil penalty.

After reviewing Winfield’s facility records, EPA said it determined that the company failed to submit and implement a risk management plan to prevent the release of aqueous ammonia at the Dodge City site. According to EPA, Omnium is subject to Risk Management Program regulations because of the location and storage of more than 20,000 pounds of aqueous ammonia in concentrations over 20 percent at the facility.

In response to its findings, EPA said Winfield took the necessary steps to return the facility to compliance.

Arianne Reaches Agreement for Port Facility

Canada, News, News Briefs, Phosphate

Arianne Phosphate, Saguenay, Quebec, the development-stage phosphate mining company advancing the Lac à Paul project in Quebec’s Saguenay-Lac-Saint-Jean region, announced on April 15 that it has reached an agreement with the Port of Saguenay for the future site of a maritime phosphate loading facility on the north shore of the Saguenay River.

Arianne said the agreement will allow it and the Port to finalize details regarding the costs, construction, and operation of the facility, from which Arianne will be shipping its phosphate concentrate globally. The final agreement will cover the use of the facility for an initial period of 30 years, thereafter renewable twice for periods of 10 years.

“Like any globally traded commodity, transportation and logistics is a key element of success,” said Brian Ostroff, Arianne CEO. “Once loaded on a ship, our phosphate can be sent anywhere, and given the high purity of our concentrate, we will enjoy tremendous economies of scale. This agreement comes at a time when global demand for phosphate continues to rise driven by a greatly improved agricultural macro and growth in specialty applications such as Lithium Iron Phosphate (LFP) batteries for cars.”

The Port of Saguenay currently operates its facilities on the south shore of the Saguenay River and is a main commercial hub in the region. As part of the agreement, Arianne said it will sell a parcel of land on the north shore to the Port for construction of the loading facility.

“With a 50-year agreement, we will be in a strong position to supply our global customers from our long life-of-mine Lac à Paul project,” said Jean-Sébastien David, Arianne Chief Operating Officer.

Egypt Impounds Suez Containership Amid $916 M Compensation Demand

Egypt, News, News Briefs

Egypt has impounded the giant container ship Ever Given, which blocked the Suez Canal for six days last month, as part of an effort to secure some $916 million in compensation.

A court in the Egyptian city of Ismailia granted a request for seizure of the 220,940-tons vessel by the Suez Canal Authority (SCA), according to a Bloomberg report, citing an April 13 report by the Al-Ahram newspaper.

The canal was closed for six days following the mega-ship’s grounding in a sandstorm on March 23, blocking the waterway and disrupting global traffic in one of the world’s most important trade routes. The vessel was finally pulled free from the bank of the canal on March 29, allowing a massive tailback of ships to start navigating the canal once again.

The SCA said the compensation is needed to cover losses of transit fees, damage to the waterway during dredging and salvage efforts, and the cost of the equipment and labor. The authority calculates it missed out on about $15 million in transit fees each day the canal was closed.

The Ever Given’s insurer for third-party losses, the U.K. P&I Club, confirmed that the ship’s Japanese owner had received a claim for $916 million, according to Bloomberg.

According to the Bloomberg report, despite “the magnitude of the claim, which was largely unsupported,” the owners and insurers of the vessel said they have been negotiating “in good faith” with the SCA, and on April 12 provided “a carefully considered and generous offer” to SCA to settle the claim. They expressed their disappointment at the SCA’s subsequent decision to seize the ship.

The SCA said the vessel will be held until the compensation is paid. The Ever Given’s 25 crew members have reportedly remained on board the ship.

Ammonium Sulfate

Ammonium Sulfate, Brazil, California, China, Eastern Cornbelt, Market Watch, Turkey, U.S. Exports, U.S. Gulf, U.S. Imports, Western Canada, Western Cornbelt

U.S. Gulf:

The ammonium sulfate barge market continued to ratchet up, with new trades called $253.50-$265/st FOB, up from the week-ago $245/st FOB. IOC is posted at $275/st FOB NOLA.

U.S. Imports:

Ammonium sulfate imports firmed 143.8 percent in February, to 101,696 st from the year-ago 41,710 st. Imports were up 101.3 percent for July-February, to 612,926 st from 304,496 st.

U.S. Exports:

February ammonium sulfate exports were noted at 58,236 st, down 18.9 percent from the year-ago 71,813 st. July-February volumes dropped 3.3 percent, to 443,736 st from 458,923 st in the prior year.

Eastern Cornbelt:

The granular ammonium sulfate market was quoted at $270-$315/st FOB in the Eastern Cornbelt, up another $5-$10/st from last report, with reports of even higher numbers out of some inland locations. The last reference prices from producers ranged from $295-$305/st FOB and $310/st rail-DEL in the region.

Western Cornbelt:

Granular ammonium sulfate remained at $255-$265/st FOB St. Louis and Caruthersville and up to $300/st FOB in Iowa on a spot basis. Producer postings continued to range from $295-$310/st FOB in the region.

California:

Ammonium sulfate pricing was steady at $298-$315/st FOB in California, with the low reported for standard grade FOB Chico and the upper end FOB Helm. Sources pegged the premium grade market at the $305/st level FOB Stockton, Woodland, and Lathrop.

Pacific Northwest:

IRM announced another price increase for ammonium sulfate in the Pacific Northwest on April 5. New levels include $338/st FOB or DEL for Tranzform and WesternPremium in Oregon, Washington, Idaho, and Montana, up $20/st from March 11 postings, $40/st higher than March 2 postings, and a full $60/st higher than Jan. 8 reference prices.

IRM’s WesternStandard prices also moved up $20/st on April 5, to $300/st FOB or DEL in those four states.

Western Canada:

Ammonium sulfate prices were moving higher on reports of extremely tight supply. The market was quoted at C$500-$510/mt DEL for May tons in Western Canada, up from C$480-$495/mt DEL in mid-March.

China:

Producers in China continue to hold to the idea of sales in the $160s/mt FOB. However, some buyers have been more successful, with purchases reported in the upper-$150s/mt FOB for caprolactam grade ammonium sulfate.

Even as prices show some softening, sources said buyers still see the price as too high to use as a substitute for urea, especially now that urea prices are coming off. One trader noted that the reluctance to buy capro-grade ammonium sulfate has moved some buyers to steel-grade ammonium sulfate, which moved up about $5/mt to the low-$150s/mt FOB.

Compactors looking to sell to Brazil and other offshore buyers are now finding that the price has moved into the $170s/mt FOB, which is beginning to move it out of the range of many buyers.

Turkey:

Ammonium sulfate imports in Turkey dropped dramatically in the January-February period compared to 2020 purchases. The first two months of this year showed imports of 46,000 mt, compared with147,000 mt during the same period last year. China was the main supplier this year, with 121,000 mt.

February 2021 imports were almost non-existent at 123 mt, according to Trade Data Monitor. This compares with 85,000 mt imported in February 2020.

Brazil:

International traders said Brazilian buyers need to be ready for higher prices out of China. Despite the predictions from offshore, Brazilian sources said the landed price of granular ammonium sulfate has softened a tad at the upper end of the old range, making the new price $210-$215/mt CFR.

Standard ammonium sulfate, however, saw a tightening of the market upward to $190-$195/mt CFR, about $45/mt higher at the lower end of the range.

The Rondonopolis price also showed a slight improvement at the upper end of the quoted price range. Sources pegged the market at $290-$340/mt FOB ex-warehouse.

Imports of ammonium sulfate for March 2021 were reported at 406,000 mt, up 142 percent from March 2020 at 168,000 mt, according to Trade Data Monitor. The main supplier remains China with about 306,000 mt received in March 2021.

First-quarter imports were also up dramatically. Trade Data Monitor reported imports for the first three months of 2021 at 2.5 million mt, representing a 47 percent increase from March 2020 of 1.7 million mt.