The Mosaic Co. reported record third-quarter net earnings of $542.1 million ($1.21 per diluted share) for the quarter ending Feb. 28, 2011, compared to the year-ago $222.6 million ($.50 per share). Third-quarter sales were $2.2 billion, up from the year-ago $1.7 billion.

“Our record third-quarter results reflect outstanding market fundamentals and effective operational execution,” said Jim Prokopanko, Mosaic president and CEO. “The world’s expanding need for food reinforces strong, long-term demand for crop nutrients. We are executing our strategy to increase potash capacity, leverage our scale, and improve operations. With robust earnings, healthy margins, and a strong balance sheet, Mosaic is well positioned for future growth.”

He told analysts March 31 that with U.S. corn inventories at all-time lows, two years of bumper crops are needed to move to more secure stock levels.

Mosaic also reported increased gross margins and operating earnings, which it said were primarily due to significantly higher phosphate selling prices and the favorable effect of higher potash production, partially offset by higher raw material costs in the phosphate sector. Gross margins were $853.6 million, up from the year-ago $476.5 million, while operating earnings nearly doubled, to $770.8 million from the year-ago $388.9 million.

Third-quarter potash operating income was $413.9 million on sales of $757.7 million, compared to the year-ago $326 million on sales of $730 million. Third-quarter potash tons sold were off slightly, to 1.863 million mt from the year-ago 1.88 million mt, while the average price was up slightly, to $358/mt from $356/mt. Production was 2 million mt, or 90 percent of capacity, an increase from the year-ago 1.3 million mt, or 59 percent capacity. Mosaic did note that it hit a salt seam in one of its mines, but that this caused only minor delays and that it is current on all of its shipping. International MOP prices moved up 14 percent, to $316/mt from the year-ago $278/mt, while domestic prices were up 7 percent, to $394/mt from the year-ago $368/mt.

Third-quarter phosphate income was $371.8 million on sales of $1.46 billion, compared to the year-ago income of $52.9 million on sales of $1.02 billion. Phosphate tons sold were 2.37 million mt, down slightly from the year-ago 2.47 million mt. The average DAP price, however, was up 62 percent to $543/mt from the year-ago $336/mt, while crop nutrient blends were up 32 percent, to $503/mt from $380/mt. Production was 2 million mt, or 83 percent of capacity, compared to the year-ago 1.9 million mt, or 75 percent capacity. Input costs were up for the phosphate segment, with sulfur prices up a whopping 127 percent to $166/lt from the year-ago $73/lt, while ammonia was up 49 percent, to $406/mt from the year-ago $272/mt.

Mosaic also pulled in $40 million in insurance proceeds during the quarter, much of that from business interruption insurance from a few years ago.

Mosaic nine-month earnings were $1.865 billion ($4.17 per share) on sales of $7.07 billion, up from the year-ago $431 million ($.97 per share) on sales of $4.9 billion. Nine-month results included a $685.6 million gain from the sale of Fosfertil assets to Vale S.A.

Nine-month potash income was $883.3 million on sales of $2.08 billion, up from the year-ago $575.9 million on sales of $1.48 billion. Some 5.34 million mt of potash were sold during the period, up from the year-ago 3.7 million mt. The average MOP price was down 5 percent for the period, to $340/mt from the year-ago $359/mt. International MOP prices remained about level for the nine months at $292/mt, up from the year-ago $291/mt, while domestic prices were off 9 percent, to $366/mt from the year-ago $400/mt.

Nine-month phosphate income was $952.1 million on sales of $5.01 billion, up from the year-ago $128.4 million on sales of $3.54 billion. Some 9.12 million mt of phos

CVR Partners LP, which owns a nitrogen fertilizer plant in Coffeyville, Kan., on March 29 announced more details in its launch of its initial public offering of 19,200,000 common units representing limited partner interests. CVR Partners will list its common units on the New York Stock Exchange under the symbol “UAN.”

CVR Partners anticipates granting the underwriters a 30-day over-allotment option to purchase up to an additional 2,880,000 common units from CVR Partners to cover over-allotments, if any, at the IPO price, less underwriting discounts and commissions. All of the common units to be sold in this offering (including the common units that may be sold to satisfy the underwriters’ over-allotment option) will be sold by CVR Partners.

If all 22.08 million shares are sold at the high end of the $12-$14 per share range proposed by the offering, CVR could pull in $309.12 million.

CVR Partners had said Dec. 20 that it had filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission in connection with a proposed IPO. At that time it said it would raise $200 million, though the number of shares and a proposed price range were not released (GM Jan. 3, p. 2011). CVR Energy announced back in November that it again planned to spin off the nitrogen unit as an IPO (GM Nov. 8, 2010). Another IPO was pulled in 2008, as well as UAN plant expansion plans (GM June 23, 2008).

After the current offering, CVR Energy Inc., which owns the oil refinery at Coffeyville, will indirectly own common units representing approximately 73.7 percent of CVR Partners’ outstanding units (approximately 69.8 percent if the underwriters exercise their option to purchase additional common units in full) and CVR Partners’ general partner with its non-economic general partner interest. CVR Partners will rely on CVR Energy for its supply of petroleum coke, as well as for management.

CVR Partners is a Delaware limited partnership focused primarily on the manufacture of nitrogen fertilizers. The CVR Partners nitrogen fertilizer manufacturing facility is the only operation in North America that uses a petroleum coke gasification process to produce nitrogen fertilizer, and includes a 1,225 ton-per-day ammonia unit, a 2,025 ton-per-day urea ammonium nitrate unit, and a dual-train gasifier complex having a capacity of 84 million standard cubic feet per day of hydrogen. Historically, petcoke has been lower priced than natural gas, which is used by most of CVR’s competitors. CVR believes it has historically been the lowest cost producer and marketer of ammonia and UAN in North America. During the past five years, over 70 percent of the petcoke used by the plant was sourced from CVR Energy’s next door crude oil refinery via a long-term agreement.

In 2010, the company produced 392,745 st of ammonia, of which about 60 percent was upgraded into 578,272 st of UAN.

Following the completion of the offering, CVR plans to move forward with a significant two-year plant expansion designed to increase UAN production capacity by 400,000 st/y, or approximately 50 percent.

CVR is positioning itself to Wall Street as a pure-play nitrogen fertilizer company, noting that nitrogen is just a component in the earnings of many of its larger competitors. In addition to being the low cost producer, CVR is also touting its transportation advantage, located near major customers.

CVR told analysts last month that it foresees a bullish run of 18-36 months for fertilizer prices (GM March 14, 2011). While CVR nitrogen results were off in 2010 (GM March 7, 2011), the company cited both a major scheduled turnaround and an unplanned equipment outage at the UAN plant. Full-year nitrogen operating income was $20.4 million on sales of $180.5 million, down from the prior year’s $48.9 million on sales of $208.4 million.

Morgan Sta

With commodity prices significantly higher than last spring, U.S. farmers plan to plant 3.99 million (4.5 percent) more corn acres, 3.89 million (8.2 percent) more wheat acres, and 1.59 million (15 percent) more cotton acres than last year, according to the U.S. Department of Agriculture’s March 31 Prospective Plantings report. The findings continue to support strong fertilizer demand this spring, even after the brisk plowdown volumes applied last fall.

The report, compiled by USDA’s National Agricultural Statistics Service (NASS), provides the first official, survey-based estimates of U.S. farmers’ 2011 planting intentions for 21 major crops. Some 85,000 farm operators across the U.S. were surveyed from Feb. 26 to March 17. In all, farmers reported intentions of planting 323.8 million acres across the 21 major crops surveyed for the report, a 7.09 million (2.2 percent) increase from 2010, but still 1.21 million acres below the 2008 total.

Corn growers intend to plant 92.2 million acres of corn for all purposes in 2011, the report said. If realized, this will be the second highest planted acreage in the U.S. since 1944, behind only the 93.5 million acres planted in 2007. Acreage increases of 250,000 or more are expected in Iowa, Kansas, Nebraska, North Dakota, Ohio, and South Dakota. The largest increase is expected in South Dakota, where growers intend to plant an additional 850,000 acres compared to last year, when wet field conditions hampered planting. Iowa and North Dakota acreage is expected to increase 500,000 and 450,000, respectively. The largest decrease in planted acreage is expected in Texas, down 150,000 acres due to an increase in cotton acreage.

Assuming a 91.7 percent harvest rate and the USDA’s projected yield of 162 bushels per acre, U.S. corn farmers will grow 13.7 billion bushels on 84.5 million harvested acres in 2011.

“Even after a difficult growing season last year, farmers produced the third largest crop and it initially shows they will produce another record crop this year,” said Bart Schott, president of the National Corn Growers Association (NCGA). “This report shows that the innovative American farmer understands the increasing global demands of corn for food, feed, fuel, and fiber, and that they see the importance of meeting those needs.”

Area planted to soybeans is expected to be 76.6 million acres, down 1 percent from last year. If realized, this will be the third largest planted soybean crop on record in the U.S. Compared with last year, planted acreage declines of 100,000 or more are expected in Iowa, Kansas, Mississippi, Nebraska, and Ohio, while record soybean crops are anticipated in New York and North Dakota.

Cotton acreage increases are expected in every state, for a total of 12.6 million acres, 15 percent above last year. The largest increase, at 548,000 acres, is expected in Texas. Acreage increases of more than 100,000 are expected in North Carolina, Georgia, and Mississippi.

The 2011 wheat planted area is estimated at 58.0 million acres. Of this, 41.2 million acres is winter wheat planted area, 10 percent above last year and up 1 percent from the previous estimate.

U.S. acres planted to all rice 2011 are projected at 3.018 million, down 17 percent from last year’s 3.636 million, and some 4 percent below 2009’s 3.135 million acres.

NASS also released the quarterly Grain Stocks report on March 31, showing corn stocks in all positions at 6.52 billion bushels as of March 1. This is down 15 percent from last year.

Soybeans stored in all positions on March 1 totaled 1.25 billion bushels, down 2 percent from a year ago, while all wheat stored totaled 1.42 billion bushels, up 5 percent from March 1, 2010.

Rough rice stocks in all positions on March 1, 2011, totaled 121 million hundredweight, up 16 percent from the same time last year.

“Despite increas