All posts by traceybg@gmail.com
Spot Barge Prices
The Week in Fertilizer Stocks
The Week in Fertilizer Stocks
| Producer | Symbol | Price | Week Ago | Year Ago |
| Agrium | AGU | 86.05 | 86.79 | 87.89 |
| CF Industries | CF | 179.50 | 182.44 | 129.76 |
| Intrepid Potash | IPI | 24.19 | 24.33 | 33.88 |
| Mosaic | MOS | 55.27 | 56.27 | 78.85 |
| PotashCorp | POT | 45.01 | 45.44 | 57.15 |
| Terra Nitrogen | TNH | 247.95 | 228.14 | 113.19 |
| CVR Partners | UAN | 26.06 | 26.65 | N/A |
| Distribution/Retail | ||||
| Andersons Inc. | ANDE | 48.29 | 48.17 | 46.56 |
| Deere & Co. | DE | 80.49 | 80.43 | 91.92 |
| Scotts | SMG | 54.33 | 52.70 | 56.72 |
USDA reports huge increase in corn acres
USDA released its Prospective Plantings report on March 30, declaring that U.S. corn growers intend to plant 95.9 million acres of corn for all purposes in 2012, up 4 percent from last year and 9 percent higher than in 2010. If realized, USDA said this will represent the highest planted acreage in the U.S. since 1937, when an estimated 97.2 million acres were planted.
Kilgore, Texas—Martin Midstream Partners LP singled out its Sulfur Services unit, which also includes fertilizer, as being its strongest segment during the fourth quarter ending Dec. 31, 2011. “Our Sulfur Services segment was strong during the fourth quarter. Margins were strong in both molten sulfur handling and in our fertilizer division,” said Rubin Martin, president and CEO of MMGP, the general partner of the company. “Sulfur-based fertilizer had its best year for the partnership during 2011. We saw strong demand for our products that continued well beyond the normal seasonal trough we see outside our growing season.” Martin told analysts March 1 that the segment should have a strong 2012 based on current fundamentals. The company expects better operating rates, as unlike 2011, it does not expect turnarounds at its sulfuric acid and ammonium thiosulfate plants. It also expects strong agricultural demand to continue. Sulfur Services operating income for the year was $27.6 million on revenues of $275 million, up from 2010’s $15.9 million on sales of $165.1 million. Sulfur Services reported fourth-quarter revenues of $68.2 million, down from the year-ago $71.3 million. Martin-wide, full-year net income was $24.3 million ($.92 per basic and diluted unit) on sales of $1.2 billion, up from the year-ago $16 million ($.63 per unit) on sales of $912.1 million. Fourth-quarter net income was off at $2.85 million ($.06 per unit) on revenues of $345.5 million, versus the year-ago $6.5 million ($.30 per unit) and $262.1 million, respectively. Quebec City—La Coop fédérée reported record earnings for the year ending Oct. 29, 2011, posting earnings before patronage dividends and income tax of C$79 million on sales of $4.55 billion, up 119 percent from the prior year $36.1 million on sales of $3.95 billion. Dividends to members rose 217 percent in 2011, to $36.5 million from the prior year $11.5 million. La Coop noted recent acquisitions in the agricultural inputs, grain marketing, and propane storage businesses. These contributed to the company-wide 15 percent increase in sales. Among them was La Coop’s 2011 acquisition of Agrico Canada Ltd./Lte., which closed Aug. 31, 2011 (GM Sept. 12, 2011). Toronto—Sherritt International Corp. reported a 29 percent increase in fertilizer revenues for the year ending Dec. 31, 2011, and a 16 percent drop in volumes. Sherritt attributed the revenue uptick to higher fertilizer prices. Revenues were C$82.5 million versus 2010’s $63.8 million, while volumes dropped to 165,208 mt from 196,090 mt. Cost of sales moved up 10 percent to $59.5 million from 2010’s $54.2 million, indicating an increased operating profit in 2011. 2011 sulfur and sulfuric acid prices were US$238/mt and US$190/mt, up from 2010’s $141.80/mt and $135.97/mt, respectively. Potash royalties for 2011 were up 48 percent to $18.9 million from 2010’s $12.8 million, reflecting stronger prices and production. However, in the fourth quarter they fell 15 percent, or $700,000, reflecting lower prices and production volumes. Fourth-quarter fertilizer volumes were up at 61,808 mt from the year-ago 58,332 mt. Sulfur and sulfuric acid prices were up at US$252.11/mt and $196.65/mt, compared to the year-ago $146.82/mt and $144.38/mt, respectively. Company-wide, Sherritt reported net earnings were C$197.3 million ($.67 per diluted share) on sales of $1.98 billion for 2011, compared to 2010’s $144.8 million ($.49 per share) and sales of $1.67 billion. The fourth quarter saw a drop in net earnings, to $28.1 million ($.09 per share) on sales of $536.8 million from the year-ago $42.7 million ($.14 per share) and sales of $485.2 million. Toronto—Chemtrade Logistics Income Fund reported net earnings of C$60.3 million ($1.48 per unit) on revenues of $880.6 million for the year ending Dec. 31, 2011, up from 2010’s $28.1 million ($.92 per share) on revenues of $558.1 million. EBITDA more than doubled, to $144.8 million from 2010’s $71.3 million. Fourth-quarter earnings were off at $3.6 million ($.09 per unit) on sales of $247.2 million, while EBITDA was up at $32.6 million. This compares to the year-ago $7.9 million, $151.3 million, and $14.1 million, respectively. The fourth-quarter revenue increase was due to higher sulfuric acid and sulfur prices, and higher volumes of sulfuric acid versus the year-ago levels. The results of the quarter and year include the contribution of Marsulex Inc., which was acquired June 24, 2011. Dallas, Tex.—DyneGroup Inc., a Dallas-based energy technology products and services company, is joining with NH3 Canada, a Canadian-based advanced technology group, to form NH3 United to produce turnkey systems designed to deliver cost effective production anhydrous ammonia for use as fertilizer and in alternative fuels. The joint venture also will focus on electrical power from renewable sources such as wind, solar, and tidal. “We’ve been working at this since 2008 and have studied every aspect of NH3 production knowing that only the most market-disruptive process would eventually succeed. Now, with this new venture, we have it!” said John Bickel, President/CEO of DyneGroup. “The two groups are completely in sync and very much look forward to working together.” “We sincerely believe that we can make a difference,” says NH3 Canada CEO Allison Leil Jr. “Our distinctly Canadian technology has proven to be world class, and now we have the international partners to make that dream come true.” Davis, Calif., & Clewiston, Fla.—Agriculture technology developer Arcadia Biosciences Inc. and the U.S. Sugar Corp. have signed an agreement to develop nitrogen use efficient (NUE) and water efficient (WE) sugarcane. Under the terms of the agreement, U.S. Sugar – one of the nation’s largest sugarcane and refined cane sugar producers, with 8 percent of all U.S. production – receives exclusive rights to the use of Arcadia’s NUE and WE technologies. According to Arcadia, the technology enables crops to maintain high yields while requiring significantly reduced levels of nitrogen. A fairly water-intensive crop, sugarcane will also benefit from WE technology, which protects yields and reduces water resource requirements. Projections are that with U.S. Sugar’s integrated breeding, production, and processing, the result could be a high-yielding sugarcane that could require about half the amount of nitrogen as conventional sugarcane. Efficient use of nitrogen will also significantly contribute to higher yields whereas at present in some areas sugarcane can be among the most nitrogen-intensive crops grown. Traverse City, Mich.—A Michigan man who had claimed that he had more than 4,000 pounds of ammonium nitrate and fuel oil in his possession for use in his construction, sand, and gravel and rock quarry business has opted for a guilty plea and faces up to 10 years in prison. John Francis Lechner, 64, reached a deal last month with prosecutors in U.S. District Court in Marquette, according to Assistant U.S. Attorney Maarten Vermaat. Vermaat told Green Markets that Lechner, who faced a multi-count indictment, pleaded guilty to possession of explosives while under indictment and probably will be sentenced in May or June. Lechner was arrested in September after an informant told Chippewa County sheriff’s officials that Lechner had requested help moving a large quantity of ammonium nitrate and fuel oil. Authorities did not accuse Lechner of plotting to detonate the mixture, but said he violated a law prohibiting anyone under indictment from having explosives. He had been charged a month earlier with several unrelated offenses, mostly stemming from his pending divorce, his attorney said. “He had no intention of using them for any nefarious purposes,” Lechner’s lawyer, Charles Malette, told the local press. “He had no intention of hurting anybody, destroying anything. He would have used them eventually for business.” Lechner, who reportedly has 83 fifty-pound bags plus 2,000 feet of detonating cord, had been scheduled for trial March 5.
Martin touts Sulfur Services segment
La Coop f?d?r?e posts record results
Sherritt fert revenues up, volumes down
Chemtrade doubles full-year earnings
New venture aims at cost-effective NH3
Arcadia, U.S. Sugar seek more N efficiency
AN possession may draw 10 years