All posts by webster@kennedyinfo.com

Ammonium Sulfate

Ammonium Sulfate, Eastern Cornbelt, Market Watch, Southeast, Southern Plains, U.S. Imports, Western Cornbelt

Eastern Cornbelt: Ammonium sulfate was steady at $425-$445/st FOB in the region, with mid-grade referenced at the $415/st FOB level. Ammonium thiosulfate pricing remained at $370-$380/st FOB.

Western Cornbelt: Granular ammonium sulfate was quoted in a broad range at $415-$445/st FOB, with the low reported out of the Sioux City, Iowa, market. The dealer price FOB Omaha, Neb., was tagged at the $420/st FOB level at mid-month.

Ammonium thiosulfate remained at $365-$385/st FOB, with the low reported in western Iowa.

Southern Plains: Granular ammonium sulfate remained at $360-$395/st FOB Texas shipping points, with the low FOB Freeport and the upper end FOB Littlefield and Plainview.

Ammonium thiosulfate pricing was up slightly from last report, moving to $325-$340/st FOB in the Southern Plains region.

South Central: Ammonium sulfate was starting to move on rice ground in southern areas of the region. Sources quoted the market unchanged at $385-$390/st FOB in the region. One source said he expects rice demand for ammonium sulfate to be down by 50 percent in his trade area due to fewer acres of rice.

Southeast: Granular ammonium sulfate pricing was unchanged in the Southeast region. List prices from DSM included $375/st FOB Augusta, Ga., $380/st DEL in Virginia and the Carolinas, $390/st DEL in Georgia and Alabama, and $400/st DEL I Florida. DSM’s standard grade ammonium sulfate prices in the Southeast region were unchanged at $242/st FOB Augusta, Ga., and $260/st DEL in Florida.

U.S. Imports: July-March imports were off 18 percent, to 226,792 st from the year-ago 276,244 st. March imports were off 17 percent, to 49,476 st from 59,265 st.

Phosphates

Central Florida, Di-Ammonium Phosphate, Eastern Cornbelt, Market Watch, Mono-Ammonium Phosphate, Pakistan, Southeast, Southern Plains, U.S. Exports, U.S. Gulf, U.S. Imports, Western Cornbelt

Central Florida: While producers in Central Florida were focusing on the export market because the domestic market was nearly over and prices were higher in Latin America, one trader who held a position from earlier in the season was selling a few railcars at $10/st FOB below the price set by producers.

The Central Florida DAP price range changed last week from the previous week’s $475-$480/st FOB to $470-$480/st FOB, but the lowest price product will soon be gone. CF Industries posted its list price at the $480/st FOB mark, and Mosaic was at $475/st FOB.

MAP continued to sell at a $20/st premium to DAP in Central Florida, about the same difference as from traders, but MAP was essentially unavailable in Central Florida. PCS Sales, which produces MAP at its White Springs facility in North Florida, was selling at prices comparable to the market.

U.S. Gulf: For all practical purposes, the spring season for phosphate was over by last week. What remained were forward sales for summer fill and NOLA DAP or MAP barges for export.

Not a lot of phosphate barges remained on the river, and there were not a lot of people looking to buy them. Those who were looking to buy barges were generally interested in using them for export, if they could be found at a price that would still guarantee a profit.

The product would almost have to come from either Mississippi Phosphate or CF Industries, but most that were available on the water were from Mosaic. So, as a consequence, not a lot was traded last week.

Prices for exportable NOLA DAP/MAP barges were generally running in the $492-$495/st FOB range, although one trader said he was asking only $485/st FOB. Several others said, however, that that trader was actually looking to buy, not sell.

Dealers see no real motivation to buy phosphate at this time of year. Although the prospects for phosphate prices going down were only marginal, it did not appear it was poised to take a sharp increase, either. Most dealers had decided they may as well just hold on to their money and wait until they actually have a prospect for selling it.

Terminal prices were still in the $510-$535/st FOB range for DAP, and MAP was seeing little activity in most areas. The premium on the river for MAP over DAP was no longer in play. Activity was said to be either on the decline or steady, with no big rush.

Crop prices were mixed last week, with corn and wheat going up a little and soybeans headed down. Prices for 2012 corn futures were higher last week compared to the previous week, rising from $5.0625/bushel to $5.19/bushel for December. The corn price for December 2013 was $5.275/bushel, increasing from $5.2225/bushel the previous reporting period. Soybeans took a hit last week. For November 2012, beans moved down to $12.96/bushel from $13.58/bushel the previous week, and soybeans for November 2013 decreased to $11.585/bushel from $12.02/bushel a week earlier. Wheat for July 2012 rose to $6.2975/bushel from $5.9775/bushel the week before, and wheat for July 2013 was listed at $6.945/bushel last week, up from $6.755/bushel the previous week.

The prompt NOLA DAP barge price range for the week was $485-$495/st FOB based on a combination of offers and sales, compared with the previous week’s $484-$500/st FOB range. MAP prices were about the same as DAP last week. NOLA DAP barge prices for forward sales from June into September were in the $490-$500/st FOB range.

Eastern Cornbelt: DAP pricing was pegged at $515-$530/st FOB most regional warehouse, with the low quoted in southern Illinois. Most warehouse quotes were in the $520-$530/st FOB range at mid-month. MAP was roughly $10-$20/st higher than DAP, where available. At East Liverpool, Ohio, the price of DAP at terminals was in the $530/st FOB range, while MAP there was bringing a $20/st F

Potash

Eastern Cornbelt, Market Watch, Potash Muriate, Southeast, Southern Plains, U.S. Gulf, Western Cornbelt

U.S. Gulf: Potash barges remained flat at $480-$485/st FOB. Sources said most product had been sourced for near-term demand.

Imports were off 33 percent in March, to 816,868 st from the year-ago 1.2 million st. For July-March they were off 25 percent, to 6.63 million st from 8.79 million st.

Eastern Cornbelt: Potash was quoted at $515-$530/st FOB regional warehouses, depending on grade and location.

Western Cornbelt: Potash remained at $510-$530/st FOB regional warehouses in the Western Cornbelt, depending on location.

Southern Plains: The potash market FOB Carlsbad, N.M., was quoted at a nominal $520-$525/st. Potash pricing out of warehouses in the Southern Plains region was pegged in the same range at $520-$525/st level FOB last week.

South Central: The potash market in the South Central region was flat at $520-$525/st FOB regional warehouses to the dealer.

Southeast: Potash pricing had reportedly slipped to $537-$551/st rail-DEL in the Southeast region, depending on grade and location, with the upper end quoted for white granular potash in the Carolinas. One source also quoted the FOB market for red granular tons at the $537/st level, with ample inventories at regional warehouses.

Sulfur

Market Watch, Sulfur, Tampa, U.S. Imports, Vancouver, West Coast

Tampa: The sulfur supply system remained in balance last week, despite high capacity rates at refineries.

The U.S. Department of Energy said last week that the weekly operating capacity rate for refineries increased 1.9 percent, from 86.4 percent to 88.3 percent. Despite the higher rate, the amount of sulfur extracted will not provide any significant increase in the amount of sulfur produced because of an increase in the use of sweet crude oil.

No transportation issues were found last week, but the potential of a Canadian Pacific rail strike still loomed. The threat may be minimal, however, because the government will likely make moves to keep the rail line operating if an agreement is not reached.

Vancouver: Spot prices have moved into the $190-$195/mt FOB range, as China was paying about $220/mt DEL.

Emersul will begin a project remelting Syncrude, a sulfur block accumulated during the past couple of decades. When it cranks up in July, it will remelt about 150 mt/d and increase to an ultimate 800-1,000 mt/d. It was not clear what impact the output of the project will have on the market, but it will probably not drive prices up.

Meanwhile, the deadline for a possible strike by Canadian Pacific rail workers was approaching last week, and no resolution had been reached. The union had asked the government not to get involved, although the company has sought intervention. The union claimed the company was not negotiating in good faith. The deadline was May 23.

West Coast: Prices for prill sulfur on the West Coast were tracking the Vancouver market.

U.S. Imports: March imports were off 30 percent, to 195,975 st from the year-ago 280,689 st. For July-March, however, they were down only 3 percent, to 1.76 million st from 1.82 million st.

Frit Industries Inc. – Management Brief

Management Briefs

David Benefield has been promoted to president of Frit Industries Inc., a major supplier of micronutrients to the fertilizer industry. He joined the company 36 years ago as an assistant to the purchasing agent. He has served in various positions of increasing responsibility over the years, most recently as senior vice president of sales. Frit Industries Inc. is a wholly owned subsidiary of Frit Inc.

Engro Fertilizers Ltd. – Management Brief

Management Briefs

Ruhail Mohammed has been named CEO of Engro Fertilizers Ltd., effective May 18, in place of Khalid Mansoor, who will retire May 17. Previously, Mohammed was a senior vice president and CFO of Engro Corp., and also CEO of Engro Powergen Ltd. He has served at various senior positions in Pakistan, the UAE, and Europe, and is on the board of several Engro subsidiaries. He is a director of the Pakistan Mercantile Exchange and Cyan Ltd.

The Mosaic Co. – Management Briefs

Management Briefs

Brian Kahnke has joined The Mosaic Co. as a new account manager covering Wisconsin and northern Illinois. He lives in La Crosse, Wisc., and comes to Mosaic from Syngenta, where he served as an account manager and a district manager for over the past six years. He has also worked for Bayer CropScience and Agriliance in Minnesota and Wisconsin. He will report to Dave Finken.

Howard Fertilizer and Chemical Co. Inc. – Management Brief

Management Briefs

Howard Fertilizer and Chemical Co. Inc., Orlando, announces continued expansion throughout its Southeast footprint with the addition of three veteran sales team members. Mike Gregory, with 38 years of green industry experience, will service the eastern portion of the Carolinas. Gregory’s focus will be on golf and lawn care markets.

Kenny Gilmore, a 21-year veteran, will serve the central portion of the Carolinas and southern Virginia. Gilmore’s efforts will be centered on the golf, lawn care, and sports turf markets.

Aubrey Hines, with more than 22 years in distribution, will service the western portion of the Carolinas and eastern Tennessee, concentrating on the golf and lawn care markets.

In addition to these new hires, Howard said two of its top-performing sales representatives will expand their current responsibilities into the Carolinas. Jay Fountain, with 22 years’ experience, will continue his capacity in the regional account representative role specific to lawn care and sports turf markets. Cris Cooke, with 20 years of industry experience, will expand her current sales territory with the company and serve as the Southeast key account representative.

TradeMark Nitrogen Corp. – Management Brief

Management Briefs

TradeMark Nitrogen Corp., Tampa, a U.S. manufacturer of liquid nitrogen products, has named Mike Barry to the company’s management team as general manager, responsible for spearheading several key initiatives, including new product development, market expansion and production upgrades. Trademark said the addition is a key strategic move as it poises itself for growth.

Barry has over 30 years of production, engineering, and managerial experience, and has held numerous leadership positions in the agriculture industry.

Robert L. ôBobö Turner – Management Brief

Management Briefs

Long time fertilizer industry leader Robert L. “Bob” Turner, 73, passed away May 14, 2012, at his home near Central Point, Ore., after a brief battle with cancer. In the
1960s and early 1970s Turner worked in sales for several companies, including Mobil, Union Oil, and U.S. Borax. In 1977 he joined Kalium Chemical as a sales representative based in York, Neb. His career with Kalium and its successor companies, Vigoro, IMC-Kalium, and IMC Global, took him to Atlanta and finally to Chicago in many management roles. Turner retired in 2001 as senior vice president of North American Sales for IMC Global, which later merged with Cargill to become the Mosaic Co. He also served as an officer or director of several trade and technical organizations in the U.S. and Canada, and received a number of awards for his service to the industry. Turner was born and raised in Tama, Iowa, and earned his B.A. degree from the University of Iowa, and an MBA in Business Management from Syracuse University. In his retirement, he moved to the Rogue River Valley in southwestern Oregon to pursue his passion for fishing. Turner is survived by his wife, Madonna, three children, and three grandchildren.