The Tampa anhydrous ammonia price for January has been concluded at $355/mt CFR, up $10/mt from December’s $345/mt CFR. Sources had been predicting prices would either roll over or see a slight increase. While up $10/mt, the increase is much smaller than in recent months, which have seen the price climb since August’s $190/mt CFR.
CSX Corp., Jacksonville, Fla., on Dec. 16, issued the following statement: “It is with great sadness that we announce that E. Hunter Harrison, president and CEO of CSX, died today in Wellington, Fla., due to unexpectedly severe complications from a recent illness. The entire CSX family mourns this loss. On behalf of our board of directors, management team and employees, we extend our deepest sympathies to Hunter’s family. Hunter was a larger-than-life figure who brought his remarkable passion, experience and energy in railroading to CSX.”
Edward J. Kelly III, Chairman of the CSX Board of Directors, issued the following statement on behalf of the board of directors: “With the passing of Hunter Harrison, CSX has suffered a major loss. Notwithstanding that loss, the board is confident that Jim Foote, as acting CEO, and the rest of the CSX team will capitalize on the changes that Hunter has made. The board will continue to consider in a deliberative way how best to maximize CSX’s performance over the long term.”
CSX had announced Dec. 14 that Harrison had stepped down from the CEO spot as a result of his illness. He had a history of running major North American railroads and turning them around.
The Indian state-owned company NFL will close a urea tender Dec. 22. Validity of the offers is to last until Dec. 29 with a ship-by date of Jan. 20, 2018.
This tender is to replace the Oct. 31 tender by NFL, which was scrapped by the Indian Department of Fertilizers. Prices offered in the last tender neared $300/mt CFR. The DOF deemed the price too high and denied NFL the funds to make awards.
Sources predict the prices in the new tender will be in the mid-$240s/mt CFR range. Iranian material is expected to dominate offers.
Sources had said if a tender was to be called, it had to be before the end of the year. Permission for NFL to import urea expires Dec. 31.
The offers will be revealed Dec. 26.
Agrium Inc. announced Dec. 12 a binding purchase agreement between its Australian ag-retail business, Landmark Operations Ltd., and Louis Dreyfus Co. (LDC) for the acquisition of Macrofertil, a fertilizer distribution business in Australia with approximately $120 million in annual sales. The business includes six fertilizer storage and distribution assets with coating and blending capabilities, and its annual sales exceed 300,000 mt.
“This network of high quality assets will complement our existing Retail footprint in Australia, and allow us to enhance our product and service offering for new and existing Landmark customers,” said Agrium President and CEO Chuck Magro.
Landmark is a leading agribusiness company in Australia, offering crop inputs, agricultural merchandise as well as agronomic advice and services for wool and livestock sales, finance, insurance and real estate. With approximately 400 locations, Landmark serves over 100,000 clients.
The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2018.
Orica plans to construct a new UAN plant in Moree, in New South Wales, with construction to start in 2018, according to a Dec. 4 Bloomberg report. The new business, Orica Agriculture, will supply grain and cotton farmers in NSW and Queensland. Orica had told Green Markets earlier this year that it had begun supplying nitrogen products to farmers and was assessing possible UAN production.
Tampa anhydrous ammonia prices have moved up again. December business has been concluded at $345/mt CFR, up from November’s $305/mt CFR. Sources cited higher international prices for the uptick. Prices have stair-stepped up from $190/mt CFR posted back in August.
K+S Group, Kassel, Germany, said Nov. 29 that it has decided to terminate potash production at the Sigmundshall site (Wunstorf-Bokeloh, Hanover Region) at the end of 2018. The news was expected as the company indicated a few weeks ago that it would likely close the mine at the end of 2018 or 2019.
The company says reserves that can be commercially mined are coming to an end. In addition, mining conditions for extracting the raw materials at a depth of more than 1,400 meters are reaching human and technological limits. In talks with workforce representatives and the trade union, new prospects and solutions are being discussed for the approximately 730 employees of the site.
The company reported that some 600,000 mt/y of product was mined from the site, including both specialty products and muriate of potash.
Junior producer Potash Ridge Corp., Toronto, said Nov. 20 that it has signed a non-binding Letter of Intent (LOI) with Canada Coal Inc. to potentially purchase, joint venture or otherwise complete such other form of transaction that may be mutually acceptable to the parties for the assets of Valleyfield Fertilizer Corp., its potential sulfate of potash producer.
The LOI contains no proposed terms or compensation for any potential transaction between the two parties. The LOI provides for a 90-day period of exclusivity, which will allow both parties to exchange information and maintain confidentiality as each party seeks to determine whether mutually beneficial business opportunities may exist. The company will update the market if and when the relationship with PRK advances to anything more material, or if the LOI terminates (whether by mutual agreement or upon the expiry of the 90-day term).
Yara International ASA said Nov. 17 that it has entered into an agreement to acquire the Vale Cubatão Fertilizantes complex in Brazil from Vale SA for an enterprise value of US$255 million. Yara said the acquisition will establish Yara as a nitrogen producer in Brazil, strengthening its production footprint and complementing its existing distribution position.
Agrium Inc. announced a third-quarter net loss from continuing operations of $69-million ($0.52 diluted loss per share) compared to a net loss from continuing operations of $38-million ($0.28 diluted loss per share) in the third quarter of 2016. The third quarter results were driven by lower overall sales volumes and higher cost of product sold related to several scheduled maintenance turnarounds and higher share-based payments due to a year-to-date total shareholder return of 10 percent at Sept. 30.
“Our results this quarter were impacted by a particularly intense summer maintenance schedule, extreme dry weather in Canada and Australia and the two hurricanes in the southern U.S. Looking at the fall season and into 2018, we see solid grower demand for fertilizer and other crop inputs, and expect fertilizer markets to demonstrate continued strength,” said Chuck Magro, Agrium president and CEO. “The sale of Conda and North Bend and China’s recent regulatory approval are significant steps toward completing the merger with PotashCorp by year end and we are excited to move forward as Nutrien in 2018,” added Magro.
Agrium expects to achieve annual diluted earnings per share from continuing operations of $4.65 to $4.80 in 2017 compared to the previous estimate of $4.75 to $5.25 per share. It reduced annual guidance range to reflect the lost production volumes in the third quarter and the impact of challenging weather conditions on Retail operations, particularly those areas impacted by hurricanes.
