Leawood, Kan.-Specialty Fertilizer Products has declined to comment on the decision by the National Advertising Division of the Council of Better Business Bureaus that SFP can support – to a point – claims for its NutriSphere-N product. SFP spokeswoman Melanie Acklin told Green Markets that the bureau’s rules prevent companies from commenting on findings regarding advertising claims. NAD responded to challenges to SPF’s advertising claims by competitor Agrotain International, saying it examined these claims, which appeared on packaging, on Websites, and in a blog post authored by the advertiser’s marketing director, as well as in other media. NAD says it determined that the advertiser’s field data, while containing some omissions and imperfections, still provided a reasonable basis for the claims its NutriSphere-N product inhibits nitrification and volatilization. But NAD added that the advertiser’s evidence did not provide a reasonable basis for its claim that NutriSphere-N works “all season long,” and recommended the advertiser discontinue the claim in all media in which it appears. Presently, the SPF Website site states that “NutriSphere-N manages nitrogen fertilizer – protecting it – at the molecular level. It’s good science and good environmental stewardship. And it lasts an entire growing season. That’s right. Not days, not weeks. NutriSphere-N remains in the soil to protect your nitrogen fertilizer investment for an entire growing season.”
All posts by traceybg@gmail.com
Indiana to assess fines for 2008 fish kill
Indianapolis, Ind.-The Indiana Department of Environmental Management (IDEM) is nearing a resolution with a McGrawsville bulk fertilizer storage operation to assign responsibility for the loss of more than 9,000 fish from the release of 5,000 gallons of liquid fertilizer in April 2008. IDEM spokesman Barry Need told Green Markets that a proposed agreement order has been sent to the company, and “we have no reason to believe it’s not going to be signed in a week or two.” McGrawsville Feed & Grain has already been cited for allowing the spill, failing to notify the department within the mandatory two-hour window after employees discovered the spill, not properly maintaining the fertilizer tank, and discharging fertilizer without a valid permit. Company officials told the local press that the 25,000-gallon tank that caused the spill has been removed, along with two others the company was not using. Five remain inside a four-foot flood wall that was in place at the time of the spill, when a hole developed high enough on the tank to allow the spill over the barrier. Need said penalties will be assessed by IDEM for the environmental impact and by the Department of Natural Resources for the loss of about 9,600 fish in a 1.6-mile stretch of Niger Creek and part of Pipe Creek.
Algae removal to produce phos, N in Utah
Logan, Utah-Utah State University researchers are leading an effort to remove algae, and eventually phosphorus and nitrogen, from Logan’s waste lagoons, which could have implications for thousands of similar systems all over the country. USU’s Energy Dynamics Laboratory recently received $500,000 in state environmental funding to build a pilot facility to harvest algae and by digestion convert the material into biofuels, including methane. Logan Environmental Director Issa Hamud told Green Markets that both phosphorous and nitrogen are in the algae when it’s removed from the ponds, and during the initial phase liquids containing the nutrients will be returned to the lagoons. However, he explained, after the methane is recovered the cellulose material that remains can be used as compost or soil amendment and the fertilizer can be separated from the liquids. Doug Lemon, interim director of EDL, said the pilot facility will serve as a model for wastewater treatment plants across the country and around the world to comply with environmental standards, and will provide a renewable energy supplement and replacement for currently used fossil fuels. Hamud said the city was spending at least $250,000 every year to aerate the lagoons to prevent algae growth, and was facing the prospect of building a $180 million treatment facility as a permanent solution. Logan Mayor Randy Watts said the city is eager to get going on the project because its wastewater treatment lagoon system is one of the largest in the country. “We’re proud to lead the way to find efficient and cost-effective processes to remove phosphorus from facilities throughout the nation,” said Watts. “In addition to providing alternative energy, we’ll clean up the algal blooms in the water flow that create damaging effects on downstream bodies of water used for wildlife habitat, as well as fishing, boating, swimming and other recreational activities.”
Rentech sells $15 M in stock
Los Angeles-Rentech Inc. said Aug. 20 that it has signed a definitive subscription agreement to sell to an institutional investor 8,571,428 shares of its common stock at a price of $1.75 per share, for gross proceeds of approximately $15.0 million. The net proceeds of the financing will be used for general corporate purposes, including funding a portion of the development costs related to Rentech’s recently announced renewable synthetic fuels and power project in Rialto, California.
Study claims phos ban cleaning up river
Ann Arbor, Mich.-Phosphorus levels in the Huron River dropped an average of 28 percent after Ann Arbor adopted an ordinance in 2006 that curtailed the use of the nutrient on lawns, according to a study published by John Lehman, professor of ecology and evolutionary biology at the University of Michigan. “It’s one of those things where political organizations take the action because they believe it’s the environmentally conscious thing to do,” Lehman said. “But (to date) there’s been no evidence offered in peer-reviewed literature that these ordinances actually have a salutary effect.” Now Lehman feels such evidence exists, according to the study he published Aug. 14 along with UofM students Douglas Bell and Kahli McDonald in the journal Lake and Reservoir Management. Lehman said the paper shows that phosphorus levels in the Huron River dropped after Ann Arbor adopted an ordinance in 2006 that curtailed the use of phosphorus on lawns. Lehman and another student had been studying nutrient levels in the Huron River and two downstream lakes, Ford Lake and Belleville Lake, for a different research project, and were ready to extend their efforts when contacted by Ann Arbor’s environmental coordinator. “Right away, we started to see decreases,” Lehman said. After the first year of data collection, it was clear that phosphorus concentrations were lower after the ordinance was enacted than before. But did the ordinance cause the drop? Though that explanation seems likely, Lehman believes public education efforts and general increased environmental awareness among Ann Arbor residents may also have entered in.
LebanonTurf makes royalty payment to Rutgers
Lebanon, Penn.-LebanonTurf, a division of Lebanon Seaboard Corp., presented a check for $280,556 to the Center for Turfgrass Science at Rutgers University as a royalty payment for the Center’s help in developing several of the company’s top turfgrass varieties. LebanonTurf has been working with Rutgers since the early ’90s in support of its seed and turfgrass businesses, according to Murray Wingate, marketing manager for LebanonTurf. “The Rutgers Turfgrass Center is at the forefront of nationally recognized, multidisciplinary research that has helped Lebanon and the turfgrass industry overall provide improved turfgrass solutions for our customers,” Wingate said. Royalties from the Center’s partnership with LebanonTurf and other private sector firms go to support the grass seed breeding program, which is conducted at three locations in New Jersey, and to grants that encourage additional research by faculty.
More Missouri sludge testing will take months
Kansas City, Mo.-State and federal investigators say it will be months before the final results are available from the second round of sampling farms in northwest Missouri for chromium 6 in sludge used as fertilizer. A spokesman for the Missouri Department of Natural Resources (DNR) told Green Markets that the state is working with EPA to develop protocol for sampling more farms in northwest Missouri that received the sludge from a tannery now being operated by National Beef Co. “Nobody has ever conducted large scale farm field sampling for chromium, so new protocols need to be developed,” explained DNR’s Larry Archer. “When the protocol is ready we’ll be ready.” However, initial sampling earlier this year by DNR and EPA in three of the four counties found only trace amounts of hexavalent chromium ?Çô a known carcinogen also known as chromium 6 ?Çô which are considered not high enough to threaten human health. Archer said that the team is putting finishing touches on identifying fields to be sampled with the owner’s approval, and plans are to include small, medium, and large acreages that received the sludge from former owner Prime Tanning starting in 1983. “We were not expecting to find any chromium,” Archer said. “Since we found some, we need to really get out there and try to get a broader picture of the extent of chromium in those fields.” Archer said another phase of the investigation involving steel barrels supposedly buried at the St. Joseph plant nearly 25 years ago has turned up nothing. The search, in response to a complaint filed with the Missouri attorney general, was conducted with ground penetrating radar, but “we couldn’t find anything comparable to buried barrels,” Archer reported. Another site not directly connected with the tannery was also searched.
Management Briefs
H.J. Baker & Bro. Inc. has appointed Arthur (Art) Bentley to the new position of director, business development. He will work on strategic initiatives designed to drive the company’s customer-focused profitable growth. He joins H.J. Baker with 13 years of corporate finance experience in investment banking, commercial banking, and commercial lending. Most recently, he spent seven years at GE Commercial Finance, where he executed mergers, acquisitions, and divestitures, as well as corporate lending with a focus on corporate and energy financing opportunities. Prior to that, he held merger and acquisition advisory roles with The Dai-Ichi Kangyo Bank and WestMerchant Bank.
“Art’s expertise and practice will be integral as he helps develop and lead new growth strategies that take advantage of opportunities in our core business and related agricultural proficiencies,” said Christopher V. B. Smith, H.J. Baker president and CEO. “He is exactly the type of team player we were looking for as we proactively examine new growth options.”
“I am very pleased to be joining an industry leader such as H.J. Baker,” said Bentley. “My goal is to create the best deals possible across all of our product lines. I know that we will be continuing to build on their reputation of more than 150 years of superior products and commitment to customer service. As we work to expand H.J. Baker, maintaining that reputation will be paramount.”
Bentley has a B.A. from Niagara University in Niagara Falls, N.Y., and an M.B.A from Syracuse University. He served for more than 11 years in the U.S. Army Reserve, ultimately earning the rank of Captain.
CF Industries Holdings Inc. said Sept. 1 that Christopher Bohn has joined the company as director of corporate planning. He succeeds Steve Chase, who will retire later this year. Bohn was previously chief financial officer for Hess Printing Solutions, a privately-held producer of catalogs, books, magazines, and directories. Prior to joining Hess, he was vice president of global financial planning and analysis for Merisant Worldwide Inc. Bohn also previously held financial analysis and strategy positions with Searle Pharmaceuticals and the 3M Corporation.
Bohn earned his B.S. in Finance from Indiana University and his M.B.A. from Northwestern University’s Kellogg Graduate School of Management.
Jerry Lippert has joined Inter-Chem as a regional sales manager responsible for Missouri, Illinois, and Ohio. He has previously served in various operations, sales, and management roles with Agrico Chemical Co. and Freeport Sulphur Co. He most recently served as president of The Marble Quarry Inc. in Mandeville, La.
Lippert will be based in Inter-Chem’s Tulsa, Okla., office and may be reached at 918-496-7711 or by email at jlippert@ictulsa.com.
LebanonTurf has named Lori Zimmerman marketing manager for the company’s professional line of biological plant nutrition turf products. She will be responsible for developing and implementing marketing programs and promotions, as well as pricing and products within LebanonTurf’s biological plant nutrition segment. Prior to returning to Lebanon Seaboard, where she was senior product manager and retail marketing manager for nine years, Zimmerman was director of marketing at Oldcastle Lawn & Garden. Lebanon Seaboard is the parent company of LebanonTurf.
Zimmerman is the former president of the Wild Bird Feeding Industry and served on the board of the organization, which is dedicated to enhancing consumers’ backyard bird watching and feeding experiences.
Five FS member cooperatives were recognized by Growmark Inc. for business performance improvement during the cooperative’s recent annual meeting. The cooperative with the highest degree of improvement was Ag View FS Inc., Princeton, Ill. Mark Orr is the manager and Ron Pierson is president.
Second was New Alliance FS, Inc., Oskaloosa, Iowa. Bob Farber is the general manager and Scott Etcher the president.
Third was Lincoln Land FS Inc., Jacksonville, Ill. Keith Hufendick is the manager, and Joe Pickrell is the president.
There was a tie for fourth place. At Stephenson Service Company, Freeport, Ill., Jay Kempel is the manager and Keith Meier is the president. Also earning fourth place is West Central FS Inc., Macomb, Ill. Barry Schmidt is the manager, and Duane Deitrich is the president.
For the second year in a row, Agriland FS Inc. General Manager John Knobloch received Growmark Inc.’s Chairman’s Award for Excellence in Management. Agriland is based in Winterset, Iowa. The award is the highest honor Growmark bestows to member cooperative managers who have achieved outstanding results in the following management categories: percent or dollars of sales increase, credit administration, operating expense efficiency, and return on invested capital.
The award is given to general managers whose performance has placed them within the top 20 percent of Growmark member cooperatives in each of the key management areas.
Marsulex Inc. has announced the appointment of Randy Hull to the newly-created position of senior vice president, development. Marsulex said he has extensive experience in the petroleum, energy, and chemical industries, which are key targets for future growth of Marsulex’s industrial services. He worked for 16 years with BOC/Linde Gases, an international industrial gases company, in a variety of increasingly senior positions focused on business development, sales, and marketing, as well as the development and commercialization of new process technologies in the petroleum refining industry. Most recently, Hull was director, global refining/energy services business development, at Praxair Inc., the largest industrial gases company in North and South America. He has also held positions at a management consulting firm and as president/COO of a renewable energy company. He holds a B.S. in mechanical engineering from LeHigh University and an M.B.A. from Harvard Business School.
Market Watch
AMMONIA
U.S. Gulf/Tampa: Nothing new was reported last week to test the market, leaving the last done at Tampa at $325/mt DEL.
As of Sept. 3, Direct Hedge (DH) paper market indications were $320-$340/mt for September, $310-$330/mt for October, and $270-$290/mt for November and December.
Natural Gas: The real news for U.S. ammonia producers is that October gas settled on Thursday, Sept. 3, at $2.508/mmBtu.
Eastern Cornbelt: Sources reported few changes to the spot fertilizer prices, and little new activity to test the markets. One source reported some applications taking place on alfalfa seedings in his location, but little else was moving to the field.
Anhydrous ammonia was quoted in the $350-$370/st FOB range in the region, depending on location and time of delivery. Forward contract tons for October through December were being offered at $360-$365/st FOB in Indiana and $365-$370/st FOB in Illinois.
Western Cornbelt: Anhydrous ammonia remained at $315-$340/st FOB regional terminals for cash market tons.
Southern Plains: Several sources said ammonia movement on preplant wheat has been brisk in the region, particularly when compared with last year’s pace. The ammonia spot market remained at $270-$290/st FOB regional production points, with the upper end of the range in the low $300s/st FOB pipeline terminals.
South Central: Sources continued to report some spot ammonia business at the $290/st level FOB Memphis, Tenn.
Middle East: The tightness of the market and a dearth of properly placed vessels moved the price up dramatically. Sources report Mitsui bought a cargo from PIC at $270/mt FOB. This is the same amount Fertil looked for late last month, but failed to achieve at that time. The price jump marks a $20 increase. Sources say there is every indication that the price will continue to rise.
The Fertil tons eventually were sold to Kissan on a formula basis.
Mitsubishi bought an additional 13,500 mt from Fertil for a Korean buyer. This particular cargo also included 13,500 mt from Sabic.
The intricate maneuvering of cargos and vessels was necessary, say sources, because of the tightness of the market and the poor positioning of vessels. One trader noted there are plenty of ships ready to move ammonia, but in the past couple of weeks the vessels were in the wrong location to move the unexpected extra tons from Fertil.
Fertil had extra ammonia because of difficulties with its urea operations. The urea plant should be back to normal soon. Sources add that Fertil is in no rush to bring back urea operations. At present, ammonia is a better moneymaker for the area producers than urea.
Buyers and sellers expect to see prices continue to rise. Demand from Asia and the United States is driving much of the strength in the market.
Black Sea: Last year at this time buyers were bemoaning prices nearing $1,000/mt FOB. Today producers are excited about the possibility of $280/mt FOB. No one could point to any business at the $280/mt FOB level last week, but with $265/mt FOB firmly in hand and with demand from buyers in the U.S. and Europe stepping up, sources in Asia say the price should go up.
Strong buying in Asia is also helping. While such buying does not directly affect most deals from Yuzhnyy, the fact that Asian buyers are taking every ounce of ammonia the Asian producers and Middle East producers can turn out means other buyers have to go to the Black Sea.
Even though a number of the ammonia producers in the area are still closed, those that are able to turn out ammonia are selling their product quickly. Sources say the area is sold out for the month of September. October is also beginning to look good as well.
The shuttered producers are still waiting for the price to get past the costs of inputs.
A tough natural gas market and prolonged soft ammonia market forced many producers to shut down rather than operate at a loss. The big fear of the companies still running is that once the price hits the break-even point, more plants will come on line and weaken the market once again.
DH has paper trades at Yuzhnyy at $265-$280/mt for September, $270-$280/mt October, $250-$270/mt November, and $245-$260/mt December.
Asia: Demand is strong throughout the region. End users – or their contracted agents – were snapping up tons as quickly as possible. Kissan moved to grab a cargo from Fertil on a formula basis. Sabic and Fertil sold material to Mitsubishi for a Korean buyer. And Mitsui picked up a cargo from PIC for India. The Mitsui deal moved up the Middle East market price $20.
Sources report even PhilPhos has been talking to traders about a cargo.
The obvious suppliers to the East Asian market – Indonesia and Malaysia – have plants running at full capacity just to keep up with the contracts. Talk of scheduled turnarounds is being pushed back to ensure each contract is fulfilled.
UREA
U.S. Gulf: New prompt granular trades last week were put as low as $267/st FOB; however, most were still calling the market $270-$275/st FOB. Sources said that the higher premium paid for prills has come off, with price ideas now in line with granular.
As of Sept. 3, DH paper trade indications were $255-$260/st September and $245-$252/st October-December, with first quarter 2010 at $250-$255/st.
Eastern Cornbelt: Granular urea pricing had reportedly slipped back to $315-$325/st FOB in the region, down $10/st from last report, as NOLA barge values continued to slide. One source pegged the Cincinnati market at the $320/st FOB level last week.
Western Cornbelt: Granular urea was pegged at $315-$325/st FOB regional terminals. One source said dealer pricing in his trade area had moved from $320/st early in the week back up to the $325/st FOB level out of inland shipping points.
Southern Plains: Sources quoted the granular urea market at $310-$315/st FOB Enid and Inola, Okla., down slightly from last report. Supply was described as adequate for current demand, but inventories could get tight due to a one-week extension of the lock closures on the Arkansas River below Catoosa/Inola. Sources said Locks 17 and 18 were originally slated to be closed from Aug. 24 through Sept. 6, but that has now been extended to Sept. 13.
South Central: The granular urea market was tagged at $300-$315/st FOB regional terminals to the dealer, down slightly from last report. Suppliers who were still referenced at the upper end of that range reported no sales taking place.
Southeast: Granular urea was pegged at the $310/st level FOB port terminals, which was down slightly from earlier reference levels at the $315/st mark. Savannah, Ga., remained out of urea in early September.
India: Delegates to the TFI World Conference in Washington, D.C., the week of Sept. 13 will have plenty to talk about in the urea market.
Just as delegates will start winging their way to Washington Sept. 10, IPL will be closing a tender.
The validity date of the offers, Sept. 14, expires just as the conference really gets going. Shipment, under the terms of the tender, is for late September and October. The shipment dates effectively eliminate Chinese tons as a factor because the urea export duty jumps to 110 percent after September 15.
The company – as is standard practice from India now – did not specify how many tons it was ready to buy.
Sources expect to see offers in the low $270s/mt CFR. One trader said the price might even be lower, with $270/mt CFR as the fallback position for IPL.
The last round of Indian purchases was from the July 29 tender held by MMTC. At that time India took about 500,000 mt, most in the low $280s/mt CFR.
Steady production in the Middle East and the Black Sea, combined with a number of buyers snapping up Chinese material in the past 45 days, means there is an excess of urea, say sources.
MMTC bought mostly from the Black Sea. Sources say IPL may turn its eyes to the Middle East.
Taking tons from the Middle East is often easier for Indian buyers. The buyers are dealing directly with the producers. This, said one observer, makes negotiating easier.
The Middle East producers can also handle a variety of vessel sizes, which provides more flexibility in the discharging ports. Importers and the central government welcome any way to get the urea more quickly to local distributors.
Pakistan: Area sources say the Saudi Arabian and Pakistani governments have not yet reached an accord on a US$100 million loan package from the Saudi kingdom. If the deal goes through, sources say the soft loan could buy the 200-300,000 mt Pakistan needs for the upcoming Rabi season. Without the deal, TCP and the Pakistan government will have to come up with their own money. Sources say the Pakistan treasury is already stretched thin. Before it ran its last set of tenders, TCP reportedly had some difficulty ensuring the local banks would honor the letters of credit it planned to issue. Local media say the national bank and finance minister stepped in to assure the local bank operators.
TCP reportedly rejected a cargo of imported urea. As a result, the Liberian vessel St. Peter, laden with 32,210 mt of imported prilled urea, has been anchored at the Gwadar Port of Pakistan for the last eleven days. The supplier – Transfert FZCO of UAE – is still hoping that objections about quality will be withdrawn, hence the vessel is not sailing. TCP awarded a contract in July this year to Transfert for a supply of 150,000 mt of urea at price of US$281.27 per mt CFR. The cargoes are being supplied from Russian/CIS.
Middle East: The last bit of business puts the prilled and granular market in the low $270s/mt FOB. No new business – outside of long-term contracts – has been concluded in weeks. Officially, producers and buyers say the price is in the low $270s/mt FOB. Unofficially, they all say the real price – once it gets tested in a tender or other spot deal – is more like the low $250s/mt FOB.
It was when discussion of material around $250/mt FOB got serious that rumors circulated that IPL/India was willing to accept a price in the low $270s/mt CFR. The $250/mt FOB number is also the number pointed to by people backing off “reasonable” freight and expenses from the landed price of imported urea into New Orleans.
Producers have been slowing down production even as reserves build. Only those companies with long-term contracts have been moving tons out of the region.
Industry observers say IPL could be in a very good position to fill the Middle East producers’ order books – but only at the right price.
One trader said he would be waiting to see if the producers aggressively go to win the tender, or if they remain stubborn in their views that the price needs to move up.
Black Sea: Even as the rumors of an Indian tender strengthened and then confirmed, the price out of Yuzhnyy kept falling.
Sources report a small cargo sold for $231/mt FOB.
Talk continues of sub-$300/mt FOB going into the IPL tender that closes Sept. 10.
Asian traders look at the Black Sea price and freight and say that $230/mt FOB puts the product right in the Indian sweet zone.
One observer said Black Sea producers filled many of the MMTC tender awards. They could do it again in the IPL tender.
With Chinese product out of play because of the high export duties that will be in place after Sept. 15, sources say the only competition is the Middle East. At the right price, IPL could satisfy its buying needs with large orders from both sources.
Going into the final number-crunching period before the IPL tender, sources put the Black Sea urea market at $230-$235/mt FOB.
As of Sept. 3, DH paper indications were $230-$235/mt September-December.
China: A few Asian traders say that even though the IPL/India tender closes Sept. 10, some Chinese material might be part of the final offers made. Scenarios laid out by more than one trader in the area have Chinese product secured and a vessel nominated before Sept. 15. The idea is that urea could be stored in the bonded warehouses and loaded after Sept. 15 without facing the higher export duty.
Other traders in the area dismiss this scene. They say that vessel owners will not allow their ships to sit at anchorage while crowded ports slowly clean out their backlogs.
One trader said even if a person could find a ship and nominate it, delays in getting the paperwork through the customs bureaucracy could doom the venture.
And lastly, producers are asking too much for their urea to be competitive with the Black Sea. One trader said the current asking price is $250-$255/mt FOB. Freight and other costs are $25-$30/mt. The delivered price would be higher. The conventional wisdom says the Indian target price is $270/mt CFR.
The next window for urea exports starts Nov. 1, when the export duty drops back to 10 percent.
Bangladesh: BCIC closed tenders August 31 for 100,000 mt and Sept. 3 for 50,000 mt.
Ten companies offered 325,000 mt in the first tender. Once the non-traditional companies were weeded out, sources said the total offers were closer to 225,000 mt.
The large amount offered did not surprise Asian sources. One trader said many of the offering companies were trying to liquidate short holdings.
Industry observers expect BCIC to reject the Blue Deebaj offer because it was offered in Euros instead of U.S. dollars. Green Markets calculated the U.S. dollar equivalent price indicated in the Blue Deebaj offer as of Aug. 31.
BCIC tender for 100,000 mt bagged prilled urea opened August 31, 2009 |
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| Supplier | Origin | Qty | FOB US$/mt | Freight US$/mt | C&F US$/mt |
| Tasia Agro | Russia | 12,500 | 242.00 | 32.00 | 274.00 |
| Bulk Trade | Middle East, China, Russia | 25,000 | 258.54 | 35.00 | 293.54 |
| Hoey Bee. | China | 50,000 | 259.37 | 35.00 | 294.87 |
| Desh Trading | China, Indonesia, Arab Gulf, Russia, Ukraine | 75,000 | 262.40 | 35.00 | 297.40 |
| Liven | China, Indonesia | 25,000 | 267.57 | 30.00 | 298.57 |
| PGP International | China, Malaysia, Indonesia, Turkey | 25,000 | 273.57 | 25.00 | 299.57 |
| Wilson International | China, Malaysia, Indonesia, Turkey | 50,000 | 278.87 | 25.00 | 304 |
| Helm | China | 25,000 | 279.74 | 26.00 | 305.74 |
| Blue Deebaj | Uzbekistan | 12,500 | Euro 195.83 (US$280.43) | Euro 21.27 (US$30.46) | Euro 217.60 (US$311.60) |
| Toepfer | Qatar-China | 25,000 | 292.39 | 35.00 | 327.69 |
No quick decision is expected in any tender. Sources said the validity period of the offers is one month.
The second tender closed Sept. 3 for at total of 50,000 mt of prills and granular material to Chittagong and Mongla. Terms of the tender say shipment must be by October 15.
Below are the results for the offers to Chittagong.
12,500 mt prilled urea in bag for discharge in Chittagong for tender of Sept. 3 |
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| Offering Company | Origin | Qty | FOB US$/mt | Freight US$/mt | C&F US$/mt |
| Anhua Ming Mince | China | 12,500 | 253.90 | 25.00 | 278.90 |
| Daewoo | Ukraine | 12,500 | 230.00 | 50.00 | 280.00 |
| Yunna Dehong | Russia | 12,500 | 246.90 | 35.00 | 283.90 |
| Pentagon Group Holding, Singapore | Russia | 12,500 | 252.00 | 37.00 | 289.50 |
| Bulk Trade | China, Indonesia, Middle East, CIS, Russia, Uzbekistan | 12,500 | 257.84 | 35.00 | 292.84 |
| Gochihata | China, Russia | 12,500 | 258.45 | 35.00 | 293.45 |
| Wilson International | China, Iran, Egypt, Russia, Ukraine, Qatar, Vietnam, Malaysia, Turkey, Uzbekistan | 12,500 | 267.52 | 25.00 | 293.52 |
| Blue Deebaj | Uzbekistan, UAE, CIS, Russia, China, Malaysia | 12,500 | 259.00 | 35.00 | 294.50 |
| Liven Agrichem PTE Ltd., Singapore | China, Indonesia, UAE, Qatar, Egypt, Vietnam, Malaysia, Iran, Russia, Uzbekistan, Turkey | 12,500 | 264.37 | 32.00 | 297.37 |
| Lushbury Fertilizer | Russia | 12,500 | 243.00 | 60.00 | 303.00 |
| Toepfer | Qatar, Egypt, China, Indonesia | 12,500 | 289.29 | 36.00 | 325.59 |
12,500 mt granular urea in bag for discharge in Chittagong, for tender of Sept. 3 |
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| Offering Company | Origin | Qty | FOB US$/mt | Freight US$/mt | C&F US$/mt |
| Gochihata | China, Russia | 12,500 | 263.45 | 35.00 | 298.45 |
| Helm | Qatar, Egypt, China, Iran, Middle East | 12,500 | 270.73 | 28.00 | 298.73 |
| Agora | China | 12,500 | 273.21 | 30.00 | 303.71 |
| Blue Deebaj | Uzbekistan, UAE, CIS Russia, China, Malaysia | 12,500 | 270.00 | 34.00 | 304.50 |
| Liven Agrichem | China, Indonesia, UAE, Qatar, Egypt, Vietnam, Malaysia, Iran, Russia, Uzbekistan, Turkey | 12,500 | 272.52 | 32.00 | 305.52 |
| Bulk Trade | China, Egypt, UAE, Saudi Arabia, Qatar, Malaysia, Indonesia, Iran, Oman | 12,500 | 273.30 | 35.00 | 308.30 |
| Wilson International China, Iran, Qatar, Egypt Ukraine, Turkey, Vietnam, Malaysia, Uzbekistan, Russia | 12,500 | 291.50 | 25.00 | 317.50 | |
| Gavilon Fertilizer | Egypt, China | 12,500 | 270.85 | 48.00 | 319.10 |
Below are the offers for shipment to Mongla.
12,500 mt prilled urea in bag for discharge in Mongla for tender of Sept. 3 |
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| Offering Company | Origin | Qty (mt) | FOB (US$) | Freight (US$) | C&F (US$) |
| Daewoo International | Russia | 12,500 | 232.00 | 50.00 | 282.00 |
| Pentagon Group | Russia | 12,500 | 252.00 | 39.70 | 292.20 |
| Gochihata | Indonesia, Qatar | 12,500 | 258.40 | 38.00 | 296.45 |
| Bulk Trade | China, Indonesia, UAE, Saudi Arabia, Qatar, CIS Russia, Uzbekistan, Egypt | 12,500 | 259.84 | 38.00 | 297.84 |
| Wilson International | China, Iran, Russia, Qatar, Ukraine, Egypt, Vietnam, Malaysia, Uzbekistan, Turkey | 12,500 | 272.52 | 28.00 | 301.52 |
12,500 mt granular urea in bag for discharge in Mongla for tender of Sept. 3 |
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| Offering Company | Origin | Qty (mt) | FOB (US$) | Freight (US$) | C&F (US$) |
| Daewoo International | Russia | 12,500 | 242.00 | 50.00 | 292.00 |
| Gochihata | Russia | 12,500 | 263.45 | 38.00 | 301.45 |
| Helm | UAE, Qatar | 12,500 | 270.73 | 31.00 | 301.73 |
| Agora International | Open | 12,500 | 273.21 | 30.00 | 303.71 |
| Bulk Trade | China, Egypt, UAE, Saudi Arabia, Qatar, Iran, Oman, Malaysia, Indonesia | 12,500 | 276.20 | 38.00 | 314.20 |
| Gavilon Fertilizer | Egypt, China | 12,500 | 270.85 | 52.50 | 323.60 |
Sources say for Chinese tons to be considered in these tenders, the cargo and vessel have to be nominated by Sept. 15. Freight between China and Bangladesh is pegged at $45/mt. With the current Chinese prices at around $250s/mt FOB, the increase that would come from the 110 percent export duty would put the product out of reach.
Trade Metrics, a new company out of Hong Kong, won the August 25 tender.
NITROGEN SOLUTIONS
U.S. Gulf: Most continue to put UAN barges in the $135-$140/st FOB range, though producers continue to quote $140-$145/st or higher.
DH paper price ideas for September were $137-$140/st, but fell for all of the fourth quarter to $130-$140/st. First quarter 2010 price ideas were stronger at $142-$145/st.
Sources last week were wondering if price ideas for later in the year were down due to the new Trinidad plant coming up in November, though one suggested that many of those tons may already be committed.
Eastern Cornbelt: UAN was pegged at $5.54-$5.93/unit FOB regional terminals, with the low out of Cincinnati and other spot river locations. Forward contract tons for October shipment were being offered in the $184-$198.40/st ($5.75-$6.20/unit) FOB range, while forward contract pricing for November through December was quoted in the $185.60-$201.60/st ($5.80-$6.30/unit) FOB range, depending on location.
Western Cornbelt: The UAN-32 cash market was pegged in a broad range at $165-$190/st ($5.16-$5.94/unit) FOB regional terminals, depending on location, with the low reported by Iowa sources out of spot river locations and the upper end reported in Missouri.
Southern Plains: The UAN-32 market was pegged at $155-$160/st ($4.84-$5.00/unit) FOB most regional production points last week, although Koch raised its Enid, Okla., postings on Sept. 3 to $170/st ($5.31/unit) for UAN-32 and $148.75/st ($5.31/unit) or UAN-28.
South Central: UAN-32 was quoted at $165-$178/st ($5.16-$5.56/unit) FOB regional terminals to the dealer, but sources said there has not been enough activity to test the market.
Southeast: One regional source described UAN buying activity as “quiet as a mouse” in early September, with minimal changes to spot prices. Sources put the dealer market in the $5.00-$5.45/unit range FOB regional terminals, with the upper end FOB Chesapeake, Va. UAN-30 out of Norfolk, Va., and Wilmington, N.C., was reported at the $160/st ($5.33/unit) FOB level. UAN vessel tons were reportedly being discussed in the $167-$168/mt CFR range on the East Coast, but sources said that level should be higher based on the current Black Sea market.
AMMONIUM NITRATE
U.S.Gulf: Barges continue to be called $200-$210/st FOB. As of Sept. 3, DH had the same range – $200-$210/st – for September through December.
Western Cornbelt: Ammonium nitrate was tagged at $255-$265/st FOB.
Southern Plains: Ammonium nitrate pricing was steady at $255/st FOB Catoosa, Okla.
South Central: Ammonium nitrate was quoted at $260/st FOB regional terminals to the dealer.
Southeast: Ammonium nitrate was down slightly to $280-$290/st FOB Tampa, Fla. Sources said they expect movement to pick up in late September and October.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate was commonly quoted at the $160/st FOB level to the dealer.
Western Cornbelt: Granular ammonium sulfate was tagged at $160/st FOB or rail-DEL in the region.
Southern Plains: Granular ammonium sulfate remained at $175-$215/st FOB Texas shipping points, with the low FOB Freeport.
South Central: Granular ammonium sulfate was quoted in a broad range at $160-$225/st FOB in the region, depending on location, with the upper end reported in Arkansas on a spot basis.
Southeast: Granular ammonium sulfate pricing had reportedly dropped to $155-$165/st FOB, with the upper level reflecting the reference price FOB Augusta, Ga. Rail-delivered postings into Florida from DSM Chemicals included granular sulfate at $205/st and standard at $168/st.
PHOSPHATES
Central Florida: Farmers were late planting crops this year and cool weather in the Midwest has slowed growth, so harvesting will be delayed in many areas until early October. While that is not good news for the barge market, it could help DAP railcar sales – if customers have access to rail points. That has not happened so far.
Dealers remained reluctant to make purchases, preferring to wait until they can see the back of their bins, but by the time they get around to buying, time will not be on their side.
Both traders and producers said last week that prompt sales were extremely slow and domestic demand simply did not exist. One prompt MAP railcar was sold out of Central Florida at $285/st FOB, but that was hardly enough to put a dent in inventories, which continue to be depleted by export sales.
Tropical Storm Erika was closing in. The forecasted track indicated it would swing northward and miss Central Florida, although the northern areas on the East Coast could feel some of the effects.
The Central Florida DAP price range last week continued to be as flat as the state’s terrain, $275/st FOB, based on actual sales. Small buyers can expect to pay a premium once traders unload what they have on hand. Both Mosaic and PCS Sales had a $10/st FOB additional charge for MAP. Agrifos was no longer posting rail prices, but its price for truckloads was $300/st FOB for DAP and $305/st FOB for MAP.
As of Sept. 3, DH indications were $265-$280/st for September through December.
U.S. Gulf: With the Labor Day Weekend on the horizon, little NOLA DAP barge business was conducted on the river system last week – and what was done fell within the previous week’s range, or pretty close.
The price for corn continued to drift south last week, but was still above the $3/bushel mark, which still makes it profitable for farmers.
Because most crops will not be harvested until early-to-mid October, phosphate and other fertilizers will not be applied this month. For the most part, dealers were still waiting to see the back of their bins before they start reordering. By that time, the upriver will be closed or very close to it, so re-supply by barge will be difficult.
The story was somewhat brighter in the southwestern portion of the Midwest, where harvesting was underway and fertilizers were beginning to move out of warehouses. The two biggest sellers last week were phosphate and ammonia. Phosphate because so little was used this season, and ammonia because it was a far better buy than other nitrogen products.
Oklahoma terminals were doing a brisk business in phosphate, but the Army Corps of Engineers closed Lock Nos. 17 and 18 on the Arkansas system due to maintenance work. That closure was extended from Sept. 6 to Sept. 13 and could be extended even longer. Because barges could not reach Inola and Catoosa, warehouses may empty prior to the reopening.
The NOLA DAP barge price range moved very little last week, from $280-$284/st FOB to $280-$283/st FOB. Asking prices late last week were around $280-$285/st FOB. Both Mosaic and CF were charging a $10/st FOB premium for MAP.
As of Sept. 3, DH indications were $285-$290/st for September, $288-$292/st October, $290-$295/st November, and $295-$300/st December.
Eastern Cornbelt: DAP was quoted at $320-$330/st FOB regional warehouses to the dealer, with the upper end on a spot basis in Ohio. One supplier was referencing forward contract DAP tons for October and November at $325/st FOB Peoria, Ill., and $330/st FOB Cincinnati, with a $5/st increase for December shipments.
MAP was $10/st higher than DAP. 10-34-0 was quoted at $315-$320/st FOB in the region.
Western Cornbelt: DAP was tagged at $310-$320/st FOB warehouses to the dealer, with MAP at a $10/st premium. Forward contract DAP tons for October through November were referenced by one regional supplier at $325/st FOB St. Louis and $330/st FOB Pine Bend, Minn., with a $5/st increase for December.
10-34-0 was steady at $310-$320/st FOB in the region.
Southern Plains: Phosphate movement had yet to kick into high gear on preplant wheat, but one Kansas source said activity started about two weeks ago and was proceeding at an average pace in early September. DAP was pegged at $305-$310/st FOB Catoosa, and was catching most of the phosphate demand. MAP was in tighter supply than DAP, and was reportedly trading at a firm $325/st FOB the port.
10-34-0 was quoted at $300-$315/st FOB in the region. Effective Sept. 1, Agrium’s postings for super phosphoric acid (SPA) and merchant grade acid (MGA) moved up $10/st, to $670/st rail-DEL in Colorado, Kansas, New Mexico, Oklahoma, and Texas.
South Central: Sources reported no movement on phosphates. DAP to the dealer was quoted at $300-$310/st FOB regional warehouses, down slightly from last report. MAP was $10/st higher than DAP, and TSP, where available, was $15-$20/st lower than DAP.
U.S. Export: PhosChem reached an agreement to sell 45,000 mt of DAP to Pakistan at a delivered price of $385/mt FOB, which should provide a netback of between $322/mt FOB and $325/mt FOB.
India was said to have made buys last week from China and North Africa, but the exact price and tonnage was not available. India continues to be the world’s biggest customer. Other potential markets continued to be Latin America and Africa.
The export DAP price range last week changed somewhat from $315-$320/mt FOB to $315-$323/mt FOB, based on recent transactions. The export price has been running ahead of domestic markets, but the rate of the spread appeared to be slowing just a bit.
As of Sept. 3, DH was indicating Tampa at $315-$325/mt for September and $325-$340/mt October-December.
POTASH
Eastern Cornbelt: Potash continued to be quoted in the $475-$510/st FOB range, with the lower numbers for Russian tons out of spot river locations. Sources also quoted rail-delivered domestic tons in the $490-$495/st range in southern Illinois.
Western Cornbelt: The regional potash market was quoted at $485-$510/st FOB, with the low for Russian product and the upper end from North American producers. One source also reported rail-delivered potash in the $490-$495/st range in Iowa.
Southern Plains: Sources put the potash market at $490-$510/st FOB regional warehouses, depending on grade and supplier. Most sources said they were buying tons on a loadby-load basis, purely as needed, and were not making any big commitments. Postings FOB Carlsbad, N.M., included standard 60 percent at $477/st, granular 60 percent at $482/st, standard 62 percent at $493/st, fine standard 62 percent at $496/st, and granular 62 percent at $498/st FOB.
South Central: Potash out of regional terminals was pegged in the $485-$510/st FOB range last week, with railed tons quoted as low as $490-$495/st in Arkansas. One source placed potash barge values in the $450-$460/st range FOB the Gulf.
Southeast: Delivered potash was tagged in the $520-$530/st range in the region, depending on grade and supplier. Granular potash postings from PCS Sales remained at $535/st FOB Chesapeake and Columbia, Ala.
There were unconfirmed reports last week that Koch is entering the potash market with plans for an import to come into the Port of Charleston. Koch had not returned phone calls at press time.
SULFUR
Tampa: With less than a month left in the quarter, a few in the industry were considering prices for the next period. The wildest and most optimistic hoped for something around the world price of about $30/mt, but that was probably not realistic, said other sources. The world market is weak and will likely deteriorate a bit more during the next couple of months, they said. In China, plants typically do turnarounds in September and October, so they will need less sulfur during that time. That country already has a surplus at its docks, while the rest of the world has been slow to buy. The recession was a major factor in the market.
In the U.S., both refineries and phosphate plants were running at 70 to 80 percent of capacity, so supply and demand were about equal. Overall, not a lot of factors were present to push the market either up or down, so any change in quarterly prices probably will be minimal.
Prill operations on the Gulf Coast were essentially unchanged from the previous week, and prices were $15-$18/mt FOB.
One the plus side, no hurricanes had entered the Gulf of Mexico this storm season, and transportation issues did not exist.
The Week in Fertilizer Stocks
| Producer | Symbol | Price | Week Ago | Year Ago |
| Agrium | AGU | 48.32 | 47.76 | 76.49 |
| CF Industries | CF | 83.35 | 82.18 | 134.34 |
| Intrepid Potash | IPI | 24.38 | 24.87 | 40.28 |
| Mosaic | MOS | 50.87 | 51.38 | 93.09 |
| PotashCorp | POT | 89.14 | 92.62 | 155.46 |
| Terra Industries | TRA | 32.64 | 33.06 | 45.55 |
| Terra Nitrogen | TNH | 102.58 | 105.57 | 111.96 |
| Distribution/Retail | ||||
| Andersons Inc. | ANDE | 32.11 | 30.49 | 45.89 |
| Deere & Co. | DE | 41.22 | 45.07 | 66.53 |
| Scotts | SMG | 39.56 | 41.17 | 28.01 |