Houston and Maumee, Ohio-Marathon Oil Corp. and The Andersons Inc. jointly announced July 10 that the companies have signed a letter of intent that could lead to the formation of a 50/50 joint venture that would construct and operate a number of ethanol plants. The formation of the joint venture and other related activities are subject to approval by each company’s board of directors and the execution of definitive agreements. “We are pleased to be partnering with Marathon in the pursuit of ethanol as an alternative fuel source,” says The Andersons President and CEO Mike Anderson. “We believe our strategic relationship is a natural extension of both of the companies’ rich histories in our respective industries. The Andersons has a strong tradition of service in grain markets, and recently has begun construction, management and development of ethanol plants. Marathon represents years of petroleum refining and distribution experience. Additionally, both companies have strategic interests in ethanol production and similar philosophies regarding the impact ethanol will have on American consumers and our environment.” The Andersons will provide day-to-day management of the ethanol plants, as well as corn origination, risk management, and dry distillers grain and ethanol marketing services. Site selection is expected to be finalized soon. The initial plant is expected to have a nameplate annual production capacity of 110 million gallons of ethanol. Timing of construction is contingent upon selection, regulatory requirements, permitting, and economic incentives. In other news, The Andersons said it has submitted the appropriate requests for an air permit in preparation for a potential ethanol plant to be constructed in Greenville, Ohio. The company has an option to purchase land in an industrial park in this Southwestern Ohio community. If the project goes forward, this facility would produce 110 million gallons of ethanol annually and would be the first fuel ethanol production plant in Ohio. Depending on timing, the facility could be operational as soon as the first quarter of 2008. The project is subject to approval by The Andersons board of directors. Currently, The Andersons is the largest individual investor in two ethanol facilities under construction that, when completed, will have the capacity to produce 165 million gallons of ethanol annually. The Andersons Albion Ethanol LLC is scheduled for completion in August. The Andersons Clymers Ethanol LLC is scheduled to be completed in the first quarter of 2007.
All posts by traceybg@gmail.com
ConAgra to partner in N.M. ethanol plant
Clovis, N.M.-ConAgra Trade Group, a commodity trading arm of ConAgra Foods Inc., will be a minority partner in a new 105 million gallon-per-year ethanol plant planned for Clovis, N.M. The plant will be constructed at ConAgra’s Peavey grain elevator property. ConAgra will supply corn and energy inputs for the plant; market and distribute the plant’s outputs, including ethanol and distillers grains; and provide logistics and risk management services. ConAgra recently noted that new UAN tanks at four locations will also be able to handle ethanol (GM July 10, p. 1). Construction is to start in October 2006, with production expected to be online in late 2007. The plant is expected to create 55 jobs, with an additional 50-75 indirect jobs in service of the plant; about 300 will be employed during the construction phase. The majority partner in the project is Carlyle/Riverstone Renewable Energy Infrastructure Fund I LP, which is owned by major private equity firms Riverstone Holdings LLC and The Carlyle Group. Pennsylvania-based New Hope Partners LLC is assisting the partners in developing the project. New Mexico’s only other ethanol plant, Abengoa, located in Portales, currently produces 30 million gallons per year.
UAP acquires Terral AgriService
Greeley, Colo.-UAP Holding Corp. said July 14 that it has reached an agreement in principal to acquire Terral AgriService Inc. and certain assets of Terral FarmService, Inc. and Wisner Elevator Inc. (collectively, “Terral”). The acquisition is contingent on confirmatory due diligence and the negotiation of definitive agreements. Terral, a leading chemical, fertilizer and seed distributor with over 3,000 customers, has been operating in Northeast Louisiana for over 60 years. UAP anticipates the Terral acquisition will solidify its leadership position in this market by expanding its fertilizer capabilities and significantly increasing its market share for chemicals, fertilizer and seed. The acquisition will also contribute several key assets, including five distribution facilities throughout Northeast Louisiana and key management and sales personnel. As part of the transaction, Brad Terral will enter into an agreement to remain with the business for two years. “The Terral acquisition is consistent with UAP’s previously outlined strategy to supplement organic growth with strategic acquisitions,” said Kenny Cordell, UAP CEO. “A comprehensive plan is being developed in coordination with Terral to ensure a smooth transition for Terral’s customers and employees.” Brad Terral, vice president of Terral FarmService and Wisner Elevator, added, “It’s very difficult for us to sell our family business, especially after over 60 years of commitment to the Northeast Louisiana community. By partnering with UAP, however, we are convinced that we will be able to provide an expanded range of products and services without compromising on Terral’s track record of outstanding customer service.”
Florida senator gives nod to offshore exploration
Washington-The offshore oil and gas bill is moving closer to a vote in the Senate after a compromise between Senate leaders and Senator Mel Martinez (R.-Fla.). Under the compromise, there would be a 125-mile “no drill” zone around Florida in the Eastern Gulf of Mexico. The agreement also ensures there will be no drilling east of the Military Mission Line through 2022, meaning no drilling would take place within 234 miles from the coast of Tampa. In addition, the agreement provides an option for existing leaseholders within the 125 mile buffer to swap their leases in other areas open for leasing. “This is a good deal for Florida and one we need to take so that we can protect our tourism economy, our pristine environment and our expansive military training area,” said Martinez. Sen. Bill Nelson (D-Fla.) says the bill is promising, but is awaiting assurances that the Martinez compromise will hold up in the House of Representatives, which voted that drilling can occur 50 miles offshore and be limited to 100 miles if approved by the individual states. TFI Vice President Kathy Mathers said the news is very positive for the legislation, but warned that bill opponents, notably Democrats from farm states, may still make it difficult to get the bill passed.
House Subcommittee votes for DHS bill
Washington-The House Homeland Security Subcommittee on Economic Security, Infrastructure Protection, and Cybersecurity voted 16-2 on July 11 to approve legislation that would give the Department of Homeland Security the authority to regulate chemical plant security. The Fertilizer Institute reported that two amendments – which it and other ag groups opposed – failed, with their votes along party lines. One of those amendments would have allowed states to have differing chemical site security laws, resulting in a patchwork of laws versus one national standard. The other would have required environmental provisions in the bill that would have called for companies to use “inherently safer technology.” The ag groups said this inclusion would have expanded the language of the bill beyond its intent and prompt costly environmental and worker safety policies that are not germane to securing facilities from a terrorist threat.
QAFCO to build melamine plant
Oslo-Qatar Fertilizer Co. (QAFCO), and Qatar Intermediate Industries Holding Co. on July 13 signed a shareholding agreement establishing the Qatar Melamine Co. (QMC). The new company plans to start construction of a melamine plant with a production capacity of 60,000 mt/y in the fourth quarter of 2006. The total cost of the project is estimated at US$250 million. QMC is a joint venture company for the production of melamine – QAFCO owns a 60 percent stake, while Qatar Intermediate Industries Holding Co. owns 40 percent. Yara International owns 25 percent of QAFCO. The plant’s completion date is slated as first quarter 2009. The plant site will be in the Mesaieed industrial area and within QAFCO’s complex, where it will benefit from QAFCO’s production of urea as feedstock. The melamine plant will be integrated with the production facilities of QAFCO, which, under the Qatar Melamine shareholders’ agreement, will handle both the administrative and operational aspects of the company.
New PrecisionAg Institute continues to grow
Willoughby, Ohio-Four additional companies have committed their corporate and financial support to the PrecisionAg Institute, an independent global forum dedicated to the sharing of precision agriculture practices, ideas, research, products, services, and success stories. The PrecisionAg Institute is being developed and managed by the CropLife®Media Group of Meister Media Worldwide. Ag Leader Technology Inc., The Mosaic Co., Raven Industries, and Rawson Control Systems have joined the original founders, including Agco Global Technologies, Case IH, John Deere, OmniStar, and SST Development Group.
Home Depot agrees to $425,000 fine
Hartford, Conn.-Connecticut officials say the nearly one-half million dollar fine the state levied in a settlement with Home Depot over the improper handling, display, and disposal of fertilizer, pesticides, and other hazardous products should be a reminder to all retailers that the state will not hesitate to enforce its strong environmental regulations. “The Dept. of Environmental Protection takes very seriously its responsibility to enforce these rules,” declared DEP Commissioner Gina McCarthy. DEP said Home Depot agreed to pay $425,000 in penalties for numerous violations found at 13 stores. It also includes major improvements in the company’s environmental practices. Among other things, the fine is expected to be used to help finance programs to strengthen compliance and enforcement in the retail sector.
Management Briefs
The Mosaic Company said July 11 that Jim Prokopanko will be named executive vice president and chief operating officer effective July 31, 2006. Prokopanko currently serves as a corporate vice president of Cargill Inc. “Jim’s 25 years of experience in the crop nutrition industry makes him an ideal choice to be Mosaic’s chief operating officer,” said Fritz Corrigan, Mosaic president and CEO. “This position will strengthen our organization. Jim’s credentials, including his strong leadership as a director of Mosaic since our launch in October 2004, will allow him to hit the ground running. Jim has not only helped address our major issues, he’s helped shape our strategy.”
Prokopanko, 52, will have day-to-day responsibilities for the production and commercial teams, and will report directly to Corrigan. Prokopanko will continue to serve as a director of Mosaic, and also serves on the board of Saskferco Products Inc. He has been with Cargill since 1978.
The Western Plant Health Association, Sacramento, has named Pamela Emery as director of programs. Emery is responsible for managing the multiple committees, regulatory compliance programs, plant nutrients conferences, and other projects of WPHA. Her responsibilities will also include coordinating the activities of the California Fertilizer Foundation, a nonprofit organization encouraging the use of school gardens as an effective educational tool in California schools. Emery holds a BS in environmental toxicology from the University of California, Davis, and teaching credentials in life science, chemistry, and mathematics. For the past 16 years she has served as the curriculum specialist and a program coordinator for the California Foundation for Agriculture in the Classroom, an organization that promotes agricultural literacy.
WPHA has named veteran newspaper journalist Richard Cornett its new director of communications. He will be responsible for managing and directing communication operations for the group’s membership, as well as the general public and news organizations. Cornett has worked for several news agencies in Northern California, and has also been the public information officer for the California Conservation Corps.
The Tessenderlo Group has announced organizational changes at its Inorganics business unit. As of July 1, Patrick Losson has been named director, business unit, inorganics, at the European level. Reporting to him are Paolo Cerato, sales manager, fertilizers and feed ingredients, Nicolas White, marketing manager, fertilizers, and Wouter Bleukx, marketing manager, feed ingredients.
Marsulex Inc. has named William Martin to the position of CFO. Marsulex said he was most recently vice president, finance, for a large publicly traded TSX-listed Canadian company.
The Potash & Phosphate Institute (PPI) in early June bestowed its 2005-2006 Robert E. Wagner Award on Dr. David E. Kissel, Professor and Director, Agricultural and Environmental Services Laboratories, University of Georgia; and Dr. Nathan A. Slaton, Associate Professor, Director of Soil Testing, University of Arkansas Agricultural Experiment Station. Kissel received PPI’s Senior Scientist Award, and Slaton took the Young Scientist Award. The recipient in each category receives $5,000 along with the award plaque.
According to a PPI news release, Dr. Kissel’s research on plant nitrogen nutrition “has significantly contributed to improved efficiencies of urea fertilizers by serving as the cornerstone for ammonia loss algorithms in many models that are used today. His recent efforts related to variability in southeast U.S. soils have had considerable impact in that he has integrated the effects of soil physical and chemical properties into management systems that increase productivity and protect the environment.” PPI said Dr. Slaton’s current research program focus is to update phosphorus and potassium recommendations in Arkansas for rice, soybean, and winter wheat by conducting correlation-calibration studies. “His research program is also developing guidelines for use of poultry litter as a nutrient source for crops, examining polymer coatedurea as a potential preplant incorporated nitrogen source for flood irrigated rice, investigating relationships among rice diseases/nutrient management/production practices, and examining sustainable potassium fertilization strategies for rotations involving rice and soybean,” PPI said.
“The 2006 recipients of the Robert E. Wagner Award are highly deserving of this honor, and they join a distinguished group of previous winners,” said Dr. Terry L. Roberts, president of PPI. “We congratulate Dr. Kissel and Dr. Slaton for their achievements and dedication in their profession.”
Market Watch
AMMONIA
U.S. Gulf/Tampa: The Tampa market appears to be somewhere within the $275-$280/mt DEL range. Major players settled first half July at the $280/mt DEL mark last week, with second half July settled at $275/mt DEL. In the meantime, sources reported that Mosaic bought an August spot cargo at the $275/mt DEL number.
Over at NOLA, the range continues at $242-$245/st FOB, though there were unconfirmed reports that new business may have been concluded in the $230s/st FOB. Sellers were reportedly unsuccessful at getting new business at higher or current numbers, enhancing speculation that the lower numbers may have been done. Likewise, natural gas prices, which have been trending below $6.00/mmBtu for the forward month, lend weight that NOLA ammonia could still drop some more. Those gas prices were back up this past week, with August settling at $6.129/mmBtu on July 13. Growing unrest in the Middle East was given as a major reason for energy price increases last week, particularly Israel’s attacks on Hezbollah in Lebanon.
Eastern Cornbelt: Anhydrous ammonia was down $5/st FOB at Meredosia, Ill., to $330/st FOB last week. An ammonia seller said dealers were not buying at this time because of concerns about theft from their tanks. The regional range was pegged at $330-$340/st FOB.
Western Cornbelt: Anhydrous ammonia was said to be flat at $320-$330/st FOB in Iowa.
Northern Plains: With the season pretty much over, at least for fertilizer dealers, there was little movement of any significance in the region, and prices were essentially flat. Sidedressing with ammonia and UAN was finished in the region. Anhydrous ammonia spot pricing was quoted at $315-$335/st FOB in the region, down from last report. In the Dakotas, ammonia pricing was pegged at $335/st FOB Grand Forks and $365/st DEL.
Eastern Canada: Ammonia was quoted by Ontario sources at $410-$430/mt FOB last week.
UREA
U.S. Gulf: The prompt granular barge market literally took off last week, with sources reporting a quick uptick throughout the week. The market was put at $205-$215/st FOB, with sellers quoting product at $220/st FOB by late Thursday.
Sellers gave several reasons for the increase. One major reason was simply a lack of product, with a pick up in demand. They said all of those excess imports were sold or exported out of the market. Likewise, CF exported cargoes as well and allotted tons for its major customers – i.e., former owners. Sources reported that CF was sold out into October.
There were also unconfirmed reports that Koch had opted to take its Enid, Okla., facility down for a turnaround and was in the market to cover obligations. Others said there may be problems getting barges up the Arkansas River due to lock repairs in the near term, so buyers are anxious to locate barges while they can. Sellers also claimed seasonal demand for wheat is picking up, with better wheat prices. They said phosphates are also seeing this increased demand from wheat country.
Not everyone was on the higher price bandwagon. Some buyers have downplayed the demand from wheat country and claimed the higher prices were trader-to-trader speculation. One player said such trader business may have been the case when the market was around $200/st FOB, but said the current spike is based on real demand.
Sellers note that most imports will not start to make it into NOLA until September. One Sabic cargo has reportedly been delayed due to slower-than-expected startup of Safco 4. A ConAgra vessel is reportedly due in August, with some of that already sold at $185/st FOB and expectations that the remainder may go to inland ConAgra locations.
Long-term, buyers are hoping that new plants coming up over the next year will significantly alter the demand/supply scenario.
Eastern Cornbelt: Granular urea was unchanged at $235-$245/st FOB. The dealer market FOB Cincinnati, Ohio, was $240/st FOB.
Western Cornbelt: Urea was unchanged at $235-$245/st FOB. Although barge pricing was said to be firming at the Gulf, terminal pricing remained flat, due in part to an overabundance of tons in some locations. There were unconfirmed reports that a turnaround was in effect at Enid, Okla., with urea pricing there now reportedly at the $240/st FOB level.
Northern Plains: Urea was $235-$240/st DEL and $230-$235/st FOB in the region.
Northeast: Granular urea was tagged at $265/st FOB E. Liverpool, Ohio, and $270/st FOB Philadelphia, Pa.
Eastern Canada: Granular urea was tagged at $395-$420/mt FOB in the region.
Bangladesh: BCIC recently issued tenders for import of 100,000 mt each of prilled and granular urea separately. Bids are due on Aug. 3.
NITROGEN SOLUTIONS
U.S. Gulf: Many speculated that UAN barge numbers would start to follow urea upward, with sellers generally being bullish. However, there were no firm reports of new business last week.
Agriliance is reportedly offering a fall fill program for UAN-32 FOB NOLA, with barges at $152.50/st for pickup Oct. 1 through Oct. 31. Rail tons were at $153.80/st FOB NOLA for the same period.
Like urea, sources were saying CF was sold out into October.
Eastern Cornbelt: UAN remained at $5.30-$5.75/unit FOB, with the lower numbers out of Illinois River locations. The dealer price for UAN-28 was pegged at $161/st ($5.75/unit) FOB Cincinnati.
Western Cornbelt: UAN pricing was quoted at $5.25-$5.70/unit FOB regional terminals, up just slightly from last report.
Northern Plains: UAN was said to be selling for $5.50-$5.75/unit FOB regional terminals.
Northeast: UAN-30 was quoted at $179-$180/st ($5.97-$6.00/unit) FOB Baltimore, Md., and Philadelphia. The UAN-32 market out of terminals in upstate New York was tagged at $208/st ($6.50/unit) FOB, down slightly from last report.
Eastern Canada: UAN-28 remained at $256-$265/mt ($9.14-$9.46/unit) FOB terminals.
AMMONIUM NITRATE
U.S. Gulf: No changes were reported to the barge market, which was called quiet. Sources continued to put product in the $195-$202/st FOB range.
Western Cornbelt: Ammonium nitrate was unchanged at $255-$260/st FOB.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate was steady at $150-$152/st FOB.
Western Cornbelt: Granular ammonium sulfate was $150-$155/st FOB and $155/st DEL in the region.
Northern Plains: Ammonium sulfate was put at $150-$155/st FOB and $155/st DEL in the region.
Northeast: Granular ammonium sulfate remained at $137-$150/st FOB, with the low at Hopewell, Va., and the high at Philadelphia. Delivered ammonium sulfate was $155-$175/st in the region, depending on location.
Eastern Canada: Ammonium sulfate was unchanged at $280-$290/mt FOB in the region.
Pacific Northwest: Agrium has posted granular product at $175/st FOB warehouse and $180/st DEL.
PHOSPHATES
Central Florida: The Central Florida DAP market remained extremely slow in terms of new business, but producers were keeping busy loading vessels for export and under existing contracts. However, most believe any serious increase in domestic activity will not occur for another two-to-six weeks. Most terminals it serves already have some supplies, and will not likely reorder until those become depleted. When that will happen depends on when the fall season actually gets into gear. The small amount of new sales that were done last week were at the bottom end of the range.
CSX Transportation’s freight rate increase of about $2/st will begin on Sept. 1, so expect somewhat more in the way of new sales to occur in August, before the higher rate kicks in.
The Central Florida DAP price range last week remained at $223-$227/st FOB. Mosaic’s posted price remained at $235/st FOB, and CF’s posted price was $227/st FOB. Prices do not include discounts; however, some large buyers can obtain a lower price without a discount from some producers. CF was said to be selling DAP as low as $223/st FOB. Mosaic discounts MAP $4/st from the price of DAP, while CF has no price difference. PotashCorp’s Central Florida reference price remained at $245/st FOB. In Texas, Agrifos’ prices were unchanged at $255/st FOB for DAP and $261/st FOB for MAP.
U.S. Gulf: New NOLA DAP barge sales continued to move like stagnant water last week, but it was more active than Central Florida. Traders said they had enough of a supply of phosphate products on hand to begin the fall season, but were not reordering because of a lack of demand. However, one noted that there appeared to be fewer DAP barges on the river, and less fleeting, than in past weeks. While a few barges were available at the bottom end of the range last week, more were actually sold above the previous week’s high end of the range. That could be an indication that those who purchased barges and were sitting on them could be finally getting out from under, even with low demand.
Producers said they were receiving more inquiries than in past weeks, although that has yet to translate into a multitude of new sales. The fall season will begin earliest at locations along the Arkansas River, but terminals will want their existing stocks depleted, or in the process, before reordering.
Watch for barges on the lower end of last week’s range begin to disappear this week. Based on spot sales last week, the NOLA DAP barge price range changed from $228-$230/st FOB the previous week to $228-$233/st FOB.
Eastern Cornbelt: DAP was $263-$276/st FOB regional terminals, and MAP was quoted at $262-$273/st FOB, with the low on the river system and the upper numbers inland. TSP remained at a nominal $233-$240/st FOB, and 10-34-0 was quoted at $265-$275/st FOB in the region.
Western Cornbelt: DAP and MAP remained at $265-$275/st FOB in the region, while TSP was an untested $235-$240/st FOB. 10-34-0 pricing was steady at $265-$275/st FOB.
Northern Plains: DAP remained at $270-$275/st FOB the Twin Cities and Winona, Minn., with MAP quoted at $268-$274/st FOB. No current numbers were reported for 10-34-0 in the region.
Northeast: DAP and MAP remained at $275-$280/st FOB. The 10-34-0 market in upstate New York was quoted at $265/st FOB and about $15/st more delivered.
Eastern Canada: DAP was $384-$395/mt FOB in Ontario. MAP remained at $374-$390/mt FOB in the region, and TSP was quoted at $341-$343/mt FOB in southern Ontario.
Pacific Northwest: Agrium has announced a summer fill program for MAP and APS, effective July 12. MAP is offered at $310/st FOB warehouse Washington, North Idaho, and Oregon (except for Malheur County), while APS is $240/st. The two are delivered into that area at $315/st and $245/st, respectively. In other areas of the region, MAP is offered at $305-$310/st DEL and APS at $240/st DEL.
U.S. Export: The export DAP market continues to be the dim light in a dark room, meaning at least it continues to show signs of life. Last week, PhosChem made multiple sales of DAP and MAP to various customers in Central and South America – a total of 33,000 mt at $260/mt FOB. The actual delivered prices were about the same, but higher freight rates have cut into the FOB price.
As of late last week, India had not awarded contracts based on several new tenders it recently issued, which total about 300,000 mt. Both India and Pakistan were apparently poised to make additional phosphate buys within the new few weeks.
The higher freight rates continued to reduce FOB prices for U.S. producers. The previous week’s DAP price range was $261-$263/mt FOB, but slipped slightly to $260-$263/mt FOB as a result of the higher delivery charges.
Bangladesh: Bangladesh Agriculture Development Corp (BADC) plans to import 200,000 mt of TSP during 2006-07 (July-June). The Bangladesh government has asked the authority to again import product after a gap of 16 years. BADC is expected to issue a tender for 50,000 mt soon.
POTASH
Eastern Cornbelt: Potash was quoted at $200-$207/st FOB regional warehouses, depending on grade and location.
Western Cornbelt: Rumors that new pricing for potash would soon be available, and possibly a decline of about $10/st FOB, could not be confirmed. At warehouses, potash was selling at $202-$205/st FOB in Iowa. The low end of the range remained in the mid-$190s/st FOB St. Louis, Mo.
Northern Plains: Potash remained at $178-$183/st FOB Saskatchewan mines, depending on grade. Delivered potash was tagged at roughly $203-$213/st in the region.
Northeast: Potash was reported in a broad range at $217-$248/st DEL, depending on grade and location, with the upper end reported for delivered soluble tons on a spot basis. Red potash FOB E. Liverpool was quoted at $217/st last week.
Eastern Canada: Potash remained at $260-$266/mt FOB New Brunswick mines, and $301/mt rail-DEL or FOB warehouses in Ontario and Quebec.
Bangladesh: BADC is expected to import 100,000 mt of MOP during 2006-07 (July-June). BADC is expected to issue a 50,000 mt tender soon.
India: Indian officials were in Belarus last week to discuss trade, including potash.
SULFUR
Tampa: Negotiations for third quarter sulfur contract prices were still underway last week, and phosphate producers were continuing their push for another decrease, which may be as much as $5/lt. Although there was no glut of supply in the gulf, the world market continues to flounder.
Vancouver: Prices have been deteriorating, largely due to freight costs, which continue to rise. Last week, both spot and new contract prices were found below $50/lt, down to $48/lt on an FOB basis. Phosphate producers look at that as a signal that prices for the Gulf market should go down. One sulfur supplier said that if U.S. phosphate producers cannot purchase sulfur at or below what the product costs North African producers, they would be at a competitive disadvantage and may be forced to cut production, which would not be good for the sulfur interests.
West Coast: Contracts will be settled by next week and will likely go down, but by how much was not clear.
India: FACT has announced a tender for 3 lots of 15,000 mt for arrival Cochin during Aug. 11-15, Aug. 29-Sept. 2, and Sept. 25-29. The tender closes July 18, and offers are to remain valid through July 25.
MARKET NOTES
U.S.: Agrium says fuel surcharges to several states will be increasing, effective with loads shipped July 11 going forward. There are fuel charges of 22.5 percent for Iowa, the Dakotas, Nebraska, Minnesota, Oklahoma, Missouri, Kansas, and Wisconsin. Fuel charges are 22 percent for Texas and New Mexico.
Saudi Arabia: Saudi Arabian Mining Co. (Maaden) has reportedly awarded a $240 million contract to Dragados Industrial SA, to construct four ammonium phosphate plants. The plants would produce 9,000 mt/d of DAP.