Israel Chemicals Ltd. has announced plans to acquire Thermphos International BV, a phosphorus pentasulfide maker, with a plant in Knapsack, Germany. Thermphos will become part of ICL’s Performance Products unit.

Israel Chemicals Ltd.’s Performance Products operating segment will only be acquiring the phosphorus pentasulfide (P₂S₅) business assets and operations of Thermphos International BV (NL), located in Knapsack, Germany. No other assets are involved, sources tell Green Markets.

P₂S₅ is a specialty ingredient used in the manufacture of highly technical materials such as lubrication oil additives, pesticides, mining chemicals, and other products. Due to its very specialized nature, P₂S₅ is currently manufactured in only a limited number of plants in the world, and ICL-PP is a leading manufacturer of P₂S₅ in North America.

“This acquisition complements ICL’s global presence in phosphorus-based specialty ingredients” said Charles Weidhas, president and CEO of ICL-PP. “It is the next step in the global expansion strategy that we have been following for the past decade, carrying out complementary acquisitions that have transformed our company into a global leader in agriculture, food, water, and specialty materials markets".

High grain and oilseed prices support another year of large plantings for wheat, corn, and soybeans, according to USDA Chief Economist Joseph W. Glauber.

Speaking at the USDA Agricultural Outlook Forum in Arlington, Va., on Feb. 21, Glauber said U.S. growers will plant 96.5 million acres of corn in 2013, down slightly from last year’s 75-year high. Glauber estimated the 2013 U.S. soybean crop at 77.5 million acres, which, if realized, would equal the record high level reached in 2009.

All wheat plantings in the U.S. are projected at 56 million acres, up 300,000 acres from 2012. Farmland planted to hard red winter wheat is down 0.7 million acres from 2012 due to drought, but that decline has been offset by increased seeding of soft red winter wheat, which is up 1.3 million acres from 2012. Spring wheat seedings in 2013 are projected to decline due to more profitable returns for corn and soybeans, Glauber said.

As for cotton, Glauber pegged the U.S. upland cotton crop for 2013 at 9.8 million acres, down 2.3 million acres from 2012, due to lower expected returns for cotton relative to other crops. Glauber said cotton acreage in the Southeast and South Central regions will likely be reduced in favor of corn and soybeans, while cotton growers in the Southern Plains will likely turn instead to wheat, corn, and sorghum.

“Despite a historic drought affecting much of U.S. agriculture, the U.S. agricultural economy is strong and, in aggregate, farm incomes are near record highs,” Glauber said. “The outlook for 2013 calls for a rebound in crop yields resulting in record production levels for corn and soybeans, and by autumn 2013, lower prices for most grains and oilseeds. Lower crop prices should lead to lower feed costs and improved profitability for the livestock, dairy and poultry sectors.”

Glauber said combined acreage for wheat, corn, and soybeans in the U.S. in 2013 will likely approach the 230 million acres planted to those crops in 2012, which was the highest since 1982. He said Conservation Reserve Program (CRP) enrollments for 2013/14 are down again, to 27.1 million acres, with total CRP area declining 9.7 million acres from its peak in 2007/08.

Larger domestic and world supplies will fuel lower farm prices for most grains and oilseeds in 2013, he noted, with an expected return to trend yields likely to push corn prices down significantly as stock levels rebuild in 2013.

Corn prices are forecast to average $4.80 per bushel in 2013/14, down 33 percent from 2012/13’s record levels and, if realized, the lowest average price since the 2009/10 marketing year. Similarly, Glauber said larger supplies and increased carryout will weaken soybean prices to $10.50 per bushel, down 27 percent.

Cotton prices are expected to increase by 3 percent to 73 cents per pound for 2013/14, reflecting tighter domestic supplies. Glauber said rice prices are projected at $15.20 per cwt, up 30 cents from the midpoint of 2012/13’s price, in part reflecting smaller domestic supplies and ending stocks.

USDA’s latest crop projections and supply/demand estimates will be discussed in detail by Dr. Gerald Bange, chairman of USDA’s World Agricultural Outlook Board, on Feb. 27 at the Green Markets 2013 Agriculture and Fertilizer Outlook webinar.

Bange will be joined by Tom Blue, senior fertilizer industry consultant with Blue, Johnson and Associates, and Bart Pescio, president of Yara North America, in the 90-minute live interactive event. For more information, visit www.FertilizerPricing.com/SpringOutlook2013.

CF Industries Holdings Inc. reported net earnings attributable to common shareholders of $470.7 million ($7.40 per diluted share) on sales of $1.48 billion for the fourth quarter ending Dec. 31, 2012, compared to the year-ago $438.9 million ($6.66 per share) on sales of $1.72 billion.

One quarterly highlight was record ammonia shipments from several terminals.

Full-year earnings were $1.85 billion ($28.59 per share) on sales of $6.1 billion, up from 2011’s $1.54 billion ($21.98 per share) on sales of $1.54 billion.

CF expects a great first half of 2013, citing an anticipated high corn acreage and favorable natural gas costs.

Agrium Inc. announced today that it has appointed David Everitt and Mayo Schmidt to its Board of Directors.

“Agrium is pleased to welcome two strong, uniquely qualified, independent directors with extensive agricultural, retail and distribution experience to its Board,” said Victor Zaleschuk, board chair. “David Everitt and Mayo Schmidt each have distinguished track records in the agricultural sector and have overseen the creation of significant shareholder value during their careers. Agrium will benefit from Mr. Everitt’s in-depth knowledge of the agricultural sector, obtained over his 37-year career. Mr. Schmidt is widely recognized for leading Viterra’s transformation from a regionally based cooperative into Canada’s largest agricultural inputs retailer and a leading global agricultural and food ingredients company.”

In advance of announcing these directors, Agrium said it reached out to Jana Partners LLC in order to determine whether there was a basis for resolution of the proxy battle, even though Agrium is confident that Jana will not be successful.

The parties discussed settlement for three days premised upon Jana’s agreement to stand down from its pursuit of a break up of Agrium, along with its other activist initiatives, in return for Jana naming one of its director nominees to the Agrium board. After agreeing, at the last minute, Jana reneged and insisted on two director nominees. As a result, discussions terminated.

“We are disappointed in Jana decision to prolong this fight which it is certain to lose. Shareholders are clearly not supportive of Jana’s initiative to break up Agrium,” said Michael Wilson.

Everitt recently retired as President, Agricultural Division for North America, Australia, Asian and Global Tractor Sourcing, Turf Products and Technology for Deere & Company of Moline, Illinois. He is intimately familiar with procurement, marketing and distribution in the global agricultural market space.
In this role, Mr. Everitt had responsibility for global tractor and crop care products. With Deere & Company since 1975, Mr. Everitt was previously President, Agricultural Division, Europe, Africa, South America and Global Harvesting Equipment Sourcing, Senior Vice President and Managing Director, Region II, Europe, Africa and CIS and Vice President, Region I, Worldwide Agricultural Equipment Division. He is a director of Brunswick Corporation and Harsco Corporation, both of which trade on the New York Stock Exchange, and is also a board member of the National Business Aviation Association, a Washington DC based non-profit industry group.

Schmidt was President and Chief Executive Officer, and a Director of Viterra Inc., a global agri-business with a network of 263 agricultural retail locations. Prior to its acquisition by Glencore International plc on December 18, 2012, Viterra was the only publicly-traded agricultural retailer of fertilizer, crop chemicals and seed in North America, other than Agrium. During his tenure, Mr. Schmidt developed the vision and strategy to transform the Saskatchewan Wheat Pool from a regional cooperative to Viterra, a $6.1-billion global corporation. Canadian Business Magazine recognized his efforts when it named him Chief Executive of the Year in 2009. The hallmarks of Mr. Schmidt’s leadership at Viterra were strong shareholder value creation and growth into new markets, supported by a global intelligence network, a strong financial foundation and a steady focus on operational excellence. Prior to joining Viterra, he was Executive Vice President, Domestic and International Operations, Conagra Foods Inc. Mr. Schmidt is a member of the Canadian Council of Chief Executive Officers (open to the top 150 Canadian corporations), a member of Washburn University’s Board of Trustees and the Lincoln Society, and a contributor to Harvard Un

Yara International ASA reports fourth-quarter net income after non-controlling interests of NOK 2,165 million (NOK 7.72 per share), compared with NOK 3,386 million (NOK 11.84 per share) a year earlier. Excluding net foreign exchange gain and special items, the result was NOK 7.25 per share compared with NOK 8.82 per share in fourth quarter 2011. Fourth-quarter EBITDA excluding special items was NOK 3,541 million compared with NOK 4,001 million a year earlier.

Yara’s full-year 2012 result excluding net foreign exchange gain and special items was NOK 35.52 per share compared with NOK 34.94 per share in 2011. 2012 EBITDA excluding special items was NOK 16,858 million compared with NOK 16,010 million a year earlier.

"Yara reports strong fourth-quarter and full-year results, making room for a NOK 13 per share dividend, up from NOK 7 a year ago," said Jørgen Ole Haslestad, President and Chief Executive Officer in Yara.

"Strong grain prices continue to support global nitrogen demand, even absorbing a large increase in supply from China. This demand increase is both welcome and necessary to avoid a further decline in global grain stocks," said Jørgen Ole Haslestad.

Global Yara fertilizer deliveries were up 19 percent on fourth quarter 2011. Urea sales increased by 52 percent, mainly reflecting higher sales of Qafco urea in North America and Brazil. NPK sales increased 12 percent driven by higher sales in Brazil, and nitrate sales increased 25 percent compared with fourth quarter 2011. Slightly more than half of the nitrate increase was due to higher sales in Europe, where the fertilizer season is progressing well.

Yara’s average realized urea prices decreased 11 percent, while nitrate and NPK prices declined 6 percent and 3 percent, respectively, as value-added premiums are relatively less exposed to swings in commodity nitrogen, phosphate and potash markets.

Following a slow start to the 2012/13 season, Western European nitrogen fertilizer industry deliveries increased 15 percent in the fourth quarter, with season to date deliveries 6 percent ahead of last year. Continued strong grain prices and a tightening global urea market create a positive backdrop for European nitrate markets going forward.