All posts by webster@kennedyinfo.com

Ammonia

Ammonia, Eastern Canada, Eastern Cornbelt, Market Watch, Northern Plains, U.S. Gulf, Western Cornbelt

U.S. Gulf/Tampa: The Tampa market remained quiet last week, with June business at the $625/mt DEL mark.

Eastern Cornbelt: Dealers reported heavy sidedress movement on corn in the region, and post-spraying activity was also steady. One source said growers were still planting corn in his area as well. “They keep going and finding fields,” he said. “It keeps amazing me.”

Hot, dry weather was starting to take a toll on emerging corn crops in many locations in the region, however.

Anhydrous ammonia pricing was quoted at $680-$730/st FOB regional terminals, with the low out of Illinois terminals on a spot basis. The upper end of the range was quoted in both Illinois and Indiana last week.

Western Cornbelt: The anhydrous ammonia market in the Western Cornbelt was quoted at $625-$660/st FOB most regional terminals, reflecting a slight drop from last report, with dealer reference prices reported as high as $680-$700/st FOB in late May.

Several sources said sidedress movement on corn was winding down in the region by late May.

Northern Plains: Sources reported some sidedress work on corn last week, but heavy demand won’t kick in until June in most areas. North Dakota sources said some terminals were out of ammonia in late May, but other locations were reportedly taking advantage of recent rain delays and restocking inventories.

Minnesota contacts pegged the anhydrous ammonia market in a broad range at $640-$700/st FOB, while North Dakota sources quoted prompt ammonia at $765/st FOB and $800-$805/st DEL, depending on location and supplier. Dakota Gasification’s Beulah, N.D., ammonia plant returned to production on May 20 and is running at full capacity.

Eastern Canada: One contact quoted prompt anhydrous ammonia at the $790-$800/mt FOB level in Ontario last week, which was down from last report, but sources reported little new business to test that market in late May.

Green Markets – Management Briefs

Management Briefs

Jorge Martinez has joined Green Markets as an expert Industry Analyst covering key market activities and fertilizer commodities. Martinez previously held positions with Thomson Reuters, Platts (McGraw Hill) and Business Wire in New York, as well as petroleum geology positions with Core Labs and Texaco in New Orleans. He earned his B.S. in geology and B.A in sociology simultaneously at Millsaps College, did graduate work in geology at the University of Illinois, and earned a Master of Fine Arts in Creative Writing from the University of New Orleans.

IFFCO eyes nitrogen complex in Eastern Canada

Ammonia, India, News, News Briefs, Urea

New Delhi — Indian Farmers Fertiliser Co-operative Ltd. (IFFCO) has issued an Expression of Interest regarding the engineering and construction of an ammonia and urea complex in Eastern Canada. IFFCO subsidiary Kisan International Trading FZE and a yet unnamed Canadian partner would set up the joint venture – IFFCO Canada Fertiliser Co. Ltd. The project envisages two 2,200 mt/d urea plants, two 3,000-4,000 mt/d ammonia plants, and a jetty to handle 1,000 mt/h of ammonia and 1,200-1,500 mt/h of urea. Desired completion is no more than 36 months after contracts are awarded. IFFCO said the site is in an industrial park with road and sea access. It said a temporary jetty is available and can be used for unloading equipment and bulk material, adding that electricity, natural gas, and water are available near the site.

Canada to stop regulation of fert effectiveness

Eastern Canada, News, News Briefs

Ottawa — The Canadian Food Inspection Agency (CFIA) has issued a notice that it will no longer regulate fertilizer product effectiveness, allowing CFIA resources to focus on protecting the health and safety of Canadians. CFIA says this change also provides industry with greater flexibility, reduced costs, and less red tape. Going forward, CFIA fertilizer and supplement activities will concentrate on verifying that products are safe for humans, plants, animals, and the Canadian environment. In addition, CFIA will continue to verify that products are properly labeled to avoid product misrepresentation in the marketplace and protect consumers. Safety assessments examine all ingredients in a fertilizer or supplements, including the active components as well as the formulants, carriers, additives, potential contaminants, and by-products that might be released into the environment as a result of product’s use and application to soil. The CFIA said it will work with industry and other stakeholders to develop an implementation plan.

CF reports brief Donaldsonville power outage

News, News Briefs, U.S. Gulf

Donaldsonville, La. — CF Industries Holdings Inc.’s large nitrogen complex here suffered a power outage Thursday afternoon, May 31. However, the company confirmed that power was quickly restored that evening. CF said no injuries were reported at the complex, and only minor damage was incurred. Shipping and loading resumed Friday morning, June 1, and CF was in the process of conducting an orderly startup of all plants.

Pryor Chemical buys $6.5 M in equipment

Ammonia, Midwest, News, News Briefs

Oklahoma City — LSB Industries Inc. said May 29 that its subsidiary, Pryor Chemical Co., has purchased a group of chemical plant components for $6.5 million. This equipment is intended to improve the operation and efficiency of its ammonia plant in Pryor, Okla., and for possible use at certain of its other chemical facility locations. Previously, this equipment was in operation at a chemical production facility in the U.S. LSB said over the next six-to-eight months, it expects to move the equipment from its current location to its appropriate chemical facilities for installation and to shops for refurbishment. The cost to transport, install, and refurbish this equipment has not yet been determined. LSB funded the purchase and intends to fund the other associated costs associated from its working capital.

Agrium fined $420,000 for mine death

News, News Briefs, Saskatchewan

Regina, Sask. — Agrium Inc. has pleaded guilty to one count under Occupational Health and Safety (OHS) legislation and was fined C$420,000 in Saskatoon Provincial Court on May 28. Agrium pleaded guilty to failure to provide or maintain a system of work or working environment that ensured, as far as is reasonably practicable, the health, safety, and welfare of a worker. The conviction related to an incident that occurred on May 11, 2010, at the Agrium mine in Vanscoy. A worker was killed after being struck in the head by a component that fell from a load being lifted by an overhead crane. Three other charges against the company were stayed. Reportedly, OHS levied the maximum fine, taking into consideration a 2008 fine of $234,000 against Agrium for a death in 2006. In that instance, the employee was injured by falling rock.

Fertilizer truck rollover kills driver on I-94

Midwest, News, News Briefs

Jefferson, Wisc. — The driver of a Helena Chemical Co. semitrailer truck was killed in a rollover crash that closed westbound Interstate 94 in Waukesha County for nearly two-and-a-half hours on Friday, May 25, according to the Wisconsin State Patrol. The mishap happened near mid-day when the 1999 International utility truck, pulling a large plastic tank filled with liquid fertilizer, blew the left front tire. The investigating trooper’s report stated that the blowout caused the driver to lose control of the unit, crossing over the left lane through the median and coming to rest on its roof in the westbound lanes. The tank was carrying 3,500 gallons of what was identified as a weed and feed fertilizer, but this could not be confirmed. The driver was identified as Gordo Oelke, 68, of Fond Du Lac, Wisc. The rollover caused a major westbound traffic tie-up as motorists were required to exit the freeway and travel on state highways before re-entering the interstate. The local press reported that downtown Jefferson had considerable traffic congestion because of the interstate closure.

Pilot killed in crash spreading fertilizer

California, News, News Briefs

Yuba City, Calif. — A National Transportation Safety Board (NTSB) investigation is underway to determine the cause of a cropduster plane crash May 21 in the East Nicolaus area. The pilot, identified as Nathaniel Allen Brown, 50, of Sacramento, was killed instantly. He was reportedly applying zinc fertilizer to a field and was banking and turning back south, and for unknown reasons nosedived into a field. He was working for Farm Air Flying Service and was an experienced pilot. The NTSB investigator, Patrick Jones, told Green Markets that wreckage has been removed from the field and taken to a storage facility until he can do an examination. “At this point in time all we know is that the pilot was applying a product onto the field. It appears that most of it, if not all of it, had been spread, and he was moving onto another field to pick up some more for a different site,” Jones reported. “Witnesses observed him making a tight turn and then descending into the field.” He said the final report won’t be out for a couple more months, and the cause will be determined by the board after the investigation is complete.