Three one-time events pushed CHS Inc.’s third-quarter results into the loss column for the quarter ending May 31, 2017. CHS reported a net loss attributable to CHS of $45.2 million on revenues of $8.6 billion, down from the year-ago income of $190.3 million and $7.8 billion, respectively.

“Despite the economic challenges in agriculture and energy, several of our underlying businesses are having a solid year,” said CHS President and CEO Jay Debertin. “Unfortunately, we’ve experienced three negative one-time events this fiscal year that have resulted in charges leading to a loss in the third quarter and a significant earnings decline for the year to date. In response to these events, we are implementing measures to better identify risk management gaps in some of our processes and when necessary enhance our ability to effectively manage our risks.”

CHS said the decrease is primarily the result of charges related to a Brazilian trading partner entering into bankruptcy proceedings under Brazilian law, loan loss reserve charges, of which a significant portion relate to a single large producer borrower, and asset impairment charges.

In the CHS Ag segment, grain marketing earnings decreased primarily due to a $230 million charge driven by the Brazil bankruptcy. The wholesale crop nutrients and renewable fuels businesses experienced decreases due to lower margins. The processing and food ingredients business earnings decreased primarily due to impairment charges taken on certain assets. Country Operations earnings increased due primarily to increased volumes.

The Nitrogen Production segment generated income of $8.7 million during the third quarter, compared to $25 million during the same period last year. The decrease is primarily due to lower production margins.

CHS nine-month net income was $178.5 million down from the year-ago $425.8 million. Revenues were $24 billion, up from $22.2 billion.

Just a day after the last of the shipments from the last urea tender loaded, MMTC called a tender for more urea. The tender closes July 20, with a ship-by date of Sept. 1.

In the run-up to the tender, sources said MMTC would most likely go for only 500,000 mt to 600,000 mt, rather than the 1 million mt purchased in previous tenders. If true, this means the Indians are targeting the Iranian producers and one or two Arab producers. Traders said Iranian producers can easily handle 500,000 mt in the time allotted. Any extra tons would most likely come from one or two Arab producers.

Chinese product is still too expensive to be considered for this tender.

The last Indian tender set prices at $211-$213/mt CFR. The softness of the general global urea market could lead to lower prices again.

Uralkali has confirmed a new contract to supply potash to China for August-December 2017. While Uralkali has not confirmed the tonnage or the price, sources tell Green Markets the price is $230/mt CFR, up from the prior contract price of $219/mt CFR. The same price has also been told by sources close to the deal to Bloomberg and Interfax.

Uralkali subsidiary, Uralkali Trading has concluded the contract with China’s buying consortium, which includes Sinochem, CNAMPGC, and CNOOC. Uralkali said the deal was done “as per the market level.”

The Israeli government decided on July 3 to permit Haifa Chemicals to receive ammonia via a ship off of Haifa directly to the company’s plant in the city. The decision is seen as a short-term solution for the problem of ammonia supplies to Haifa Chemicals. Haifa Chemicals would be supplied by a marine pipeline directly to its production plant in Haifa. Environmental groups have criticized the decision saying that unlike the storage tank the vessel off of Haifa port has absolutely no protection.

The government also decided on a long-term solutions whereby a relatively small ammonia plant would be built by a private company in southern Israel to supply all other users of ammonia.

Israel’s Environmental Protection Ministry has opened a criminal investigation into the polluting of a dry river bed in southern Israel by Israel Chemicals subsidiary Rotem Amfert.  The investigation will include the questioning of senior Rotem Amfert and ICL officials following the incident on June 30.

ICL said on Monday that it is still too early to assess the damage caused to the company or the environment by the leakage and the partial collapse of a dike of an evaporation pool at its Rotem Amfert fertilizer plant at Mishor Rotem.  Large amounts of highly acidic wastewater from the fertilizer production process were released following the partial collapse on Friday. ICL said that in the meantime it had partially ceased production at the facility which accounts for less than half of the phosphoric acid production at the Rotem Amfert facility.

Israel’s Environmental Protection Ministry estimated that as much as 100,000 cubic meters of water spilled into a dry river bed that leads to the Dead Sea causing “severe ecological damage.”  The phosphogypsum water that accumulates in the pool is a byproduct of the phosphate production process at the plant. The ministry ordered the company to stop using all three evaporation pools at the production plant at Mishor Rotem until a full assessment could be conducted.

The ministry said that the “green police” unit in the ministry would conduct the investigation and determine whether the evaporation pools were properly operated. This is the first time that such an extensive leakage has occurred at an industrial facility in Israel.

ICL said in its statement that “it is currently unable to fully assess the ramifications of the incident that occurred at the facility, including its environmental and financial implications, nor the company’s exposure to any enforcement proceedings that may arise as a result of the event.” The statement added that ICL requested permission to temporarily use an alternative pool and is continuing its efforts, with the help of outside experts, to find solutions for the continued operation of the plant and the short and long term restoration of the pools in coordination of with the authorities.

Just as the goods and services tax in India was to take effect July 1, the government dropped the tax on fertilizers from 12 percent to 5 percent, bowing to pressure from the fertilizer ministry and fertilizer industry. The government also announced it would review also lowering the tax on phosphoric acid and ammonia from the new 18 percent rate under the GST.

The GST caused a great deal of confusion in the industry, including cutting back on import demand for phosphates and urea.

The fertilizer industry argued the current state taxes on fertilizers range from zero to 6 percent. The removal of those taxes and the imposition of the new GST at 12 percent, the industry and fertilizer ministry argued, put an undue burden on farmers.

The GST was designed to supplant a variety of different regional and statewide taxes on goods and services with one national tax.

Potash Corp. of Saskatchewan Inc. and Agrium Inc. announced today that once the anticipated merger transaction closes, the new company will be named Nutrien.

They report that the regulatory review and approval process for the merger transaction continues and the parties expect closure of the transaction to take place in the third quarter of 2017.

Agrium Inc. through its subsidiary Loveland Products Inc. announced today that it has closed on the acquisition of Starpharma Holdings Ltd.’s agrochemical business focused on development of its proprietary Priostar® dendrimer polymer technology portfolio for $35 million. The acquisition is comprised of key intellectual property, as well as a small number of dedicated staff based in Melbourne, Australia. Agrium said these assets will support Agrium’s innovation and technology strategy through the ability to continue providing unique proprietary products that address existing and emerging grower challenges.

Agrium said this acquisition will lay the foundation for the continued development and commercialization of the Priostar® dendrimer polymer technology across a broad base of Loveland Products’ crop protection and specialty nutrition products, improving product performance and further enhancing Agrium Retail’s full solutions offering to growers. It said the technology has proven to provide numerous benefits including better weed control capabilities, formulation stability and reduced environmental impacts.

“This acquisition represents an exciting strategic technology platform for Loveland Products that will serve to further differentiate our proprietary product line and open new product development partnership opportunities. Agrium is uniquely positioned to commercialize this technology across our 1,500 ag-retail centers, which service hundreds of thousands of growers in key agricultural markets globally,” said Chuck Magro, Agrium president and CEO.