All posts by mickeybarb@charter.net

Ammonium Thiosulfate

Eastern Cornbelt:

Ammonium thiosulfate was in very tight supply after a period of brisk demand, with most locations reportedly sold out in late March. Sources put the last actual business at a firm $290/st FOB Terra Haute, Ind., with IOC now referenced at $320/st FOB Ohio River terminals.

Western Cornbelt:

The ammonium thiosulfate market was quoted at $290-$300/st FOB in the Western Cornbelt, reflecting another increase amid reports of extremely tight supply.

Southern Plains:

New ammonium thiosulfate prices from IOC on March 24 included $265/st FOB Houston, up $65/st from the company’s Feb. 25 list price.

South Central:

The ammonium thiosulfate market was up $15-$20/st, to $240-$245/st FOB Memphis.

SOP Magnesia

Southern Plains:

Trio prices were up $20/st following a mid-March price increase from Intrepid. New postings FOB Carlsbad, N.M., include $310/st for premium, $300/st for granular, $265/st for standard, $375/st for OMRI-listed granular, and $340/st for OMRI-listed standard.

“We have a strong book of sales through the second quarter and expect customers will continue to replenish warehouses as the season continues,” said Bob Jornayvaz, Intrepid’s Executive Chairman, President, and CEO. “We expect to achieve this higher pricing on spot tons in the second quarter.”

Southeast:

SOP Magnesia pricing in Florida was up $20/st from last report, at $360/st FOB for standard and $395/st FOB for premium grade.

Crops/Weather

Eastern Cornbelt:

Spotty fieldwork was underway in parts of Illinois during the week, although midweek temperatures plunged into the 40s after highs in the 60s earlier. By the Easter Weekend, temperatures across the state were expected to climb into the low-70s, with sources expecting a flurry of spring field activities.

Indiana was also expecting weekend highs in the 60s and 70s, although snow showers were reported in northwest Indiana along the lake on April 1. Several inches of snow was also possible across northern Ohio on that date, with highs only reaching the low-30s in northeastern areas of the state. Weekend highs in Ohio were expected to reach the 50s and 60s, however.

Western Cornbelt:

Favorable weather sparked a flurry of spring fieldwork in western Iowa in late March. Although spotty rains slowed the pace in other locations at midweek, sources said preplant ammonia applications were also starting in central Nebraska and eastern Iowa during the week.

Freeze watches were in effect for central Missouri at midweek, but forecasts for the Easter Weekend promised temperatures in the 60s and 70s across much of the state.

Southern Plains:

High winds and warm weather sparked some wildfires in central Kansas early in the week, while cooler temperatures at midweek prompted a freeze warning for the Kansas City area. Local reports said Kansas City recorded no snowfall during the month of March, the first time in 17 years.

Cooler weather also moved into northern Oklahoma at midweek, with the potential for freezing temperatures overnight on March 31. Breezy, mild temperatures were on tap for much of the state by the Easter Weekend, however.

Denver, Colo., posted its second snowiest March on record, but temperatures across eastern Colorado were expected to climb into the upper-60s and low-70s as the week advanced.

Temperatures across central Texas also hit the 70s at midweek, but lows in the 30s were in the forecasts for the Houston area on April 1. While southern Texas remained in drought, scattered showers were possible in other areas of the state as the week advanced, coming less than a week after strong storms brought rain, hail, and damaging winds to parts of the state.

Sources reported a flurry of spring fieldwork and planting across the region in late March. Corn planting was winding down in central Texas, with growers now turning to cotton, milo, and beans. “The planting conditions have been very good,” said one contact. “It’s a little on the dry side, but normal pasture operations are underway and it looks to be a good run, other than the sticker shock for those who have not priced fertilizer since last summer.”

South Central:

A series of powerful storms brought heavy rain, flooding, damaging winds, and tornadoes to many parts of the South Central region on March 27.

The first round churned through eastern Texas and western Louisiana during the day, spawning at least five tornadoes in Texas and producing baseball-sized hail in Louisiana. In addition to the five in Texas, ten more tornadoes were reported across the South Central region over the weekend.

The system also produced torrential rain, with more than seven inches falling in Nashville, Tenn., over the weekend, contributing to at least seven weather-related deaths. While no tornadoes were confirmed in Arkansas, the state was bludgeoned by punishing winds that caused widespread power outages across southern and northeastern portions of the state.

Forecasts warned of a second system that was expected to bring an additional 1-2 inches of rain to Middle Tennessee and southern Kentucky on March 30-31, prompting a flash flood watch for the region that extended to April 1. As of March 30, Nashville had already posted the second wettest month on record.

The surplus moisture has definitely slowed spring fieldwork in the region. “We were starting to see some movement in the Mid-South but unfortunately that rain event that came through late last week has really slowed us down again,” said one contact. “We are hoping for some better weather this week and next to get us back open again.”

Southeast:

The same powerful weather system that brought heavy rain and flooding to Tennessee and Kentucky also battered parts of the Southeast over the previous weekend. Severe thunderstorms were reported across North Carolina on March 28, with local reports of lowland flooding in Virginia as well.

Severe weather watches were also in effect in northern Georgia over the weekend, with reports of damaging winds and heavy rain. An earlier round of storms impacted Alabama the most, however, after a string of tornadoes on March 25 left at least five people dead and thousands without power.

Much of Florida was bracing for cooler temperatures as the week progressed after several days of near-record highs. Sources reported brisk field activities and fertilizer movement in the state in late March, although one contact said the dry weather has delayed applications on hay fields in some areas.

“Raw materials are being shipped out by truck as soon as they are railed to our bins,” reported one regional contact at midweek.

Transportation

U.S. Gulf:

Long waits persisted through the Bayou Sorrel Lock area for the week after a tow collided with the Bayou Sorrel Bridge on March 23. Travel through the bridge was halted through March 25, but delays up to 45 hours continued to be reported on March 29.

The collision and resulting shutdown exacerbated previously reported delays at Bayou Sorrel Lock, where maintenance and repairs are scheduled through April 7. Lock access is reportedly unavailable daily between 7:00 a.m. and 6:00 p.m. while work is underway. An additional daytime shutdown was scheduled to run from April 21 through May 15.

The Corps was expected to clear backups in the Bayou Sorrel area prior to the resumption of Gross Tete Bridge repairs, located two miles from the Bayou Sorrel Bridge at the Port Allen Route’s Mile 36. Work at Gross Tete began on March 15 and was projected to run through May 15, blocking navigation daily from 12:00 a.m. to 10:00 a.m., and from 12:00 p.m. to 10:00 p.m.

Harvey Lock is slated to undergo a total shutdown from April 5 through May 21 due to repairs scheduled at the nearby 4th Street Bridge. Traffic will detour through Algiers Lock while the effort is underway, leading sources to predict increased wait times at Algiers.

A daylight-hour maintenance project kicked off at the Colorado Locks system on March 23 and was expected to intermittently block traffic daily, from 7:30 a.m. to 4:30 p.m., through April 2. Sporadic delays were reported up to 15 hours for the week.

Towing limits continued through Port Allen Lock, sources said, due to guidewall damage sustained during a January barge collision. Westbound tows with barge counts of two or more units were obligated to use an assist vessel while locking, while those towing one barge or fewer were permitted to lock without assistance. All eastbound tows measuring 650 feet or longer were required to utilize an assist vessel. Intermittent waits were noted up to 12 hours for the week.

Restrictions also persisted through Algiers Lock, limiting unassisted tows wider than 60 feet to 600-foot lengths. Tows measuring less than 60 feet were green-lit on lengths up to 700 feet. The restrictions limited unassisted tows to four standard barges or two 30,000 mt tankers per turn, sources said, although lockages of larger cargoes were possible when accompanied by an assist vessel. Most delays were quoted in the 5-10 hour range for the week, although intermitted stoppages were heard up to 26 hours.

Intermittent overnight fog delays were reported for travel on the East and West Canals, with delays likely to continue in the week ahead.

High water conditions continued to impact movements above New Orleans, reducing the typical 25-barge maximum towing capacity by 5-10 cargoes. The river gauge at Baton Rouge, La., was reported at a minor-flood 36.04 feet and rising on March 29, with a crest of 37.5 feet expected on April 3, just shy of the 38-foot moderate-flood stage. The gauge was expected to remain at flood stage through at least April 12, and a Flood Warning issued on March 28 for the Mississippi River at Red River Landing was set to expire on April 18.

Boats passing Industrial Lock experienced intermittent 9-16 hour delays for the week, while Calcasieu Lock waits were posted up to 11 hours. Sporadic Brazos Lock crossings were heard as high as 10 hours.

Mississippi River:

Upper Mississippi River lock access continued to expand for spring navigation, with sources reporting movement as far north as Lock 2 during the week. No travel was recorded at the Twin Cities-area Lock 1 through 5:00 p.m. on March 31.

Sources described loose plans for a Lock 2 shutdown at some point in July. The project is expected to spark 4-12 hour navigation delays while work is underway. Lock 25 will also see 12-hour shutdowns in July and August for repairs to the lower guidewall, sources said. Movement is expected to be limited from 6:00 a.m. to 6:00 p.m. daily as a result.

Improving river levels at St. Louis were projected to ease restrictions in the coming days, sources said. Towing limits remained in place on March 29, however, with maximum barge counts noted at 20 units on travel between St. Louis and Cairo, Ill., down from the usual 25.

High water continued to be observed south of Cairo, resulting in tows slashed to 15-20 barges from the typical 25. Vicksburg, Miss., river levels were reported at a minor-flood 44.18 feet and rising on March 30, and were expected to remain at flood stage through at least April 13. A March 29 Flood Warning in effect for the Mississippi River at Greenville, Arkansas City, Vicksburg, and Natchez was scheduled to expire on April 14.

Intermittent 5-7 delays were reported at Lock 27 for the week.

Illinois River:

Wickets remained down at Peoria Lock and LaGrange Lock due to elevated water levels, sources said, facilitating lockless navigation at both sites.

Ohio River:

The Greenup Lock main chamber was shut through March 24 for miter gate machinery repairs, forcing traffic to detour through the secondary chamber. The Greenup auxiliary chamber is scheduled to shut for repairs through April 11, with delays of up to six hours reported for the week.

Meldahl Lock’s main chamber is scheduled to close from April 12 through June 11 for miter gate repairs and maintenance. Traffic will pass through the smaller auxiliary chamber, with delays expected.

Following the discovery of structural damage to the Markland Lock auxiliary chamber in early 2020, the chamber is projected to remain closed to navigation through an estimated Oct. 29. Traffic has continued to pass through the main chamber, with few reported delays.

Smithland Lock is scheduled to conclude a two-month auxiliary chamber repair project on April 1. The project kicked off on Feb. 1 and has seen consecutive 30-day shutdowns of the lock’s two backup locking chambers, sources said.

The secondary chamber at New Cumberland Lock has reportedly shut down through June 10 for repairs and maintenance, with boats passing through the primary chamber. The main chamber at Cannelton Lock is slated to go offline from June 21 through Nov. 19 for repairs and maintenance. Sources are predicting substantial delays while work is underway.

Increased flows continued to allow tows to transit Olmsted Lock via the non-locking navigational pass.

Treacherous operating conditions on the Tennessee River prompted some shippers to voluntarily move to a daylight-only operating schedule during the week, sources said, slowing movements and stretching pickup and delivery windows. Kentucky Lock delays were quoted in the 3-12 hour range for the week.

A complete travel shutdown was reported at the Cumberland River’s Cheatham Lock due to high flows through the site. Flows were 60 percent above the lock’s maximum safe capacity on March 29, suggesting a minimum weeklong closure.

Cheatham Lock is scheduled to shut for bio-acoustic fish fence (BAFF) maintenance from April 3 through June 3. The Corps is scheduled to pass waiting vessels on April 23-26, May 7-10, and May 21-24. Daylight-hour transit interruptions reported during the week at Barkley Lock were scheduled to conclude on April 2.

Arkansas River:

High water on the Arkansas River was reported to trigger towing restrictions during the week. Tows typically measuring up to 12 barges were capped at nine barges, sources said, delaying per-barge delivery times by an average 25 percent. Sources expected the limits to remain in effect through at least mid-April.

David D. Terry Lock is scheduled to undergo a complete shutdown from Aug. 27 through Sept. 9 for dewatering and repairs. In preparation for the shutdown, sporadic navigation stoppages are anticipated on Aug. 16-26.

Heartland Co-op – Management Brief

Heartland Co-op, West Des Moines, Iowa, announced that Chris Behrens has been selected as the cooperative’s Executive Vice President of Sales and Marketing. Behrens has been employed at Heartland Co-op since January 2019 as a Regional Operations Manager. He succeeds Dave Coppess, who retired on Dec. 25, 2020. Behrens has been in the cooperative setting for 16 years supporting agronomy and energy sales.

Construction on New Canadian SOP Plant Expected to Begin by Late 2021

Saskatchewan Mining and Minerals Inc. (SMMI), Chaplin, Sask., said on March 23 construction of a new C$220 million sulfate of potash (SOP) fertilizer production upgrade at its SMMI sodium sulfate plant is scheduled to begin by late 2021. The upgraded facility is expected to be complete by the end of 2023 and produce 150,000 mt/y.

SMMI said the decision to proceed was primarily based on the completion of a favorable preliminary feasibility study conducted by the Wood Group, Saskatoon.

In addition, the company cited the Saskatchewan Ministry of Environment’s determination that the expansion is not a development and will not require further environmental approvals, and the Saskatchewan Government’s conditional approval for funding of this major upgrade through the Saskatchewan Chemical Fertilizer Incentive (SCFI) (GM July 31, 2020).

The SCFI is a non-refundable, non-transferable 15 percent tax credit on capital expenditures valued at C$10 million or more for newly constructed or expanded eligible chemical fertilizer production facilities in Saskatchewan.

“The Government of Saskatchewan has been engaged and highly supportive in their efforts to get behind SMMI, as it seems our project is directly aligned with their 10-year plan to create jobs, stimulate the economy, and help build a strong economy and quality of life for Saskatchewan people,” said Rodney McCann, SMMI President.

“Saskatchewan is the only place on this planet that has the abundance of natural resources, the infrastructure, reputation, climate, people, and progressive supportive government to allow for a project like this,” added McCann. “In these challenging times, it seems only natural for an absolute ‘only in Saskatchewan’ opportunity to take center stage in the rapidly growing global plant nutrition industry.”

As for how the SOP will be marketed, SSMI said it is currently in discussions with several companies to finalize offtake agreements.

SMMI said it sees great potential in combining its world-class sodium sulfate with Saskatchewan-produced potash to produce a high-value, premium SOP fertilizer for domestic and international growers. The company said while it has not finalized its potash supply agreement, it will be sourcing potash from one of the several nearby potash mines, all of which have excess capacity to meet company requirements.

SMMI added that it currently has sodium sulfate reserves in several locations in Saskatchewan, including additional locations that can be brought on stream immediately. It said it has the capacity and reserves to supply the 150,000 mt/y Chaplin facility for more than 20 years. It said it has further capacity and reserves strategically located within Saskatchewan that allow for up to 400,000 mt/y of additional SOP production for over 25 years.

In business nearly 75 years, the private, family-owned SSMI said its sodium sulfate serves over 80 customers across several industries, including detergents, pulp and paper, glass, starch, industrial enzymes, water treatment, and livestock mineral feed.

SMMI has selected Veolia Water Technologies to develop the process design for the new project. The company said the upgrade will implement cutting-edge design and technology, the first of its kind in Canada, which promises to be up to 25 percent more energy efficient than technology currently being used to produce SOP.

“SMMI’s fertilizer production upgrade is an exciting move forward, with a dedication to sustainability,” said Jim Brown, CEO of Veolia Water Technologies Americas. “We are proud to partner with SMMI on this project and look forward to what’s to come.”

SMMI said the expansion will have immediate and long-term positive economic benefits for the town of Chaplin and for the Province of Saskatchewan as a whole. Construction on the upgrade is expected to take up to two years and will generate up to 700,000 labor hours. Once complete, the addition of SOP production will result in an estimated 50 percent increase in jobs at the Chaplin facility on an ongoing basis.

“As we emerge and recover from the COVID-19 pandemic, Saskatchewan’s rural communities and industries will play a vital role in that recovery,” said Lyle Stewart, MLA for Lumsden – Morse. “Saskatchewan Mining and Minerals’ SOP fertilizer upgrade is leading that charge, and will help us deliver on our mandates of growing our natural resource and agricultural economies, creating jobs, and growing Saskatchewan exports.”