All posts by webster@kennedyinfo.com

Ammonium Sulfate

Ammonium Sulfate, Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, Western Cornbelt

Eastern Cornbelt: Granular ammonium sulfate was steady at $375-$385/st FOB in the Eastern Cornbelt region. The ammonium thiosulfate market was pegged at $360-$380/st FOB in early March.

Western Cornbelt: Granular ammonium sulfate in the Western Cornbelt was unchanged at $370-$385/st FOB. The ammonium thiosulfate market was steady as well at $360-$380/st FOB in the region.

Northern Plains: Sources quoted the granular ammonium sulfate market at $380-$390/st FOB in the Northern Plains region, with the upper end FOB the Sioux City, Iowa, market. Delivered ammonium sulfate was pegged at $395-$405/st in the region.

Ammonium thiosulfate was quoted at $370-$380/st FOB in Minnesota and $450-$455/st DEL in North Dakota.

Northeast: Sources quoted the granular ammonium sulfate market at $350-$355/st FOB and $355-$360/st DEL in the Northeast.

Eastern Canada: Granular ammonium sulfate pricing in early March was tagged at $460-$470/mt FOB in Eastern Canada.

Phosphates

Central Florida, Di-Ammonium Phosphate, Eastern Canada, Eastern Cornbelt, Market Watch, Mono-Ammonium Phosphate, Northeast, Northern Plains, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida: Everyone was waiting for the weather last week, and the betting was that it will be an early spring after the “winter that never was.” Before dealers start placing orders, however, they want to see some bare space at the bottom of their bins, and that will take a run of drier and warmer weather.

Florida was already well into its spring season, but most of that need was being met by trucks, not rail. Georgia was spreading lime, but had not yet begun to spread fertilizers to any great extent.

Railcars were being loaded in Central Florida for contracts and formula-based sales, but not on a prompt, spot basis.

The Central Florida DAP price softened slightly last week, moving from $460-$480/st FOB the previous week to $460-$470/st FOB. CF Industries was posted at the $465/st FOB mark, and Mosaic was ready to do business in the $460-$470/st FOB range, depending on quantity. CF was mostly sold out until late March or early April.

MAP remained in short supply, and was priced at a $20/st premium to DAP by Mosaic in Central Florida, about the same difference as from traders.

PCS Sales was selling at prices comparable to the market.

U.S. Gulf: For traders and producers, the big question last week was whether to sell now at a relatively low price, or hold and potentially get more in a couple of weeks.

All signs point to an early spring, but dealers were not about to start ordering because they still have a lot in their bins. Once that runs out – and it will – they will order, and it may happen all at the same time. That means logistics will be difficult, and prices will rise. Those with positions and NOLA phosphate barges will do well, especially if they are at the right locations.

The spurt of business that happened during the previous few weeks was essentially the result of companies lining up quantities for export deals. The export market in Latin America was on its way down, however, and that market looked less attractive last week.

Some areas of the country served by the river system – such as the Southern Plains and Texas – were beginning to see increased activity. Conditions there were not nearly as dry as they have been. More phosphate was going to wheat and row crops than for corn, where the big money is.

The Mississippi River should be fully operational within a week or even less, so NOLA barges will be able to make the trip all the way to Minnesota.

NOLA phosphate barge availability was a question last week. There were more than enough to meet the lack of demand last week, but whether there will be enough once the season kicks into gear was unclear. Mosaic was not sending phosphate across the Gulf and was not producing it at Donaldsonville. Much of Mississippi Phosphates’ production has been going to the export market through Transammonia, and CF Industries has a heavy export schedule through Keytrade. As the export market backs down, that situation may change.

Prices for corn futures were down a little last week compared to the previous week, falling from $5.685/bushel to $5.54/bushel for December 2012. The corn price for December 2013 was $5.4525/bushel, down from $5.597/bushel the previous reporting period. Soybeans for November 2012 increased slightly to $12.9275/bushel from $12.925/bushel the previous week, and beans for November 2013 retreated to $12.18/bushel from $12.24/bushel the previous week. Wheat for July 2012 fell to $6.45 from $6.805/bushel a week earlier, and wheat for July 2013 was listed at $7.04/bushel last week, a drop from $7.32/bushel a week earlier.

Based on transactions, the NOLA DAP barge price range for the week was $438-$443/st FOB, compared with the previous week’s range of $435-$447/st FOB. The market will probably meander for another couple of weeks before it

Potash

Eastern Canada, Eastern Cornbelt, Market Watch, Northeast, Northern Plains, Potash Muriate, U.S. Gulf, Western Cornbelt

U.S. Gulf: Potash barges were called $490-$500/st FOB. Sources said all the interest last week was on nitrogen. By comparison, phosphates appeared to be in the backseat – and potash in the trunk.

Eastern Cornbelt: Sources quoted the potash market in the $535-$545/st FOB range in the Eastern Cornbelt region, with many regional warehouses solidly at the $540/st FOB level in early March.

Western Cornbelt: The Western Cornbelt potash market was quoted in the $525-$545/st range FOB regional warehouses, depending on grade and location, with the low reported in southern Missouri.

Northern Plains: Potash was steady at $530-$550/st FOB regional warehouses, depending on location, with delivered granular tons quoted at the $562/st level in the North Dakota market. Potash pricing FOB Saskatchewan mines for U.S. customers remained at $530-$540/st FOB, depending on grade and supplier.

Northeast: Potash pricing was quoted as low as $540-$550/st FOB Baltimore in early March, with the upper end pegged at the $560/st FOB mark on a spot basis. On a delivered basis, the potash market was pegged at $570-$590/st in the Northeast region, depending on grade and location.

Eastern Canada: Potash pricing out of Ontario warehouses was unchanged at $640-$650/mt FOB, with the low for red and the upper end for white granular tons.
Sulfate of potash (SOP) was steady at $830/mt FOB in Ontario.

The K-Mag market was up slightly from last report at $485-$495/mt FOB regional warehouses, depending on location and supplier.

Sulfur

Market Watch, Sulfur, Tampa, Vancouver, West Coast

Tampa: Mosaic was said to be vatting excess sulfur at Galveston. One source said the amount was about 13,000 mt, and that may be an indication of excess supply.

However, another source said he had been unable to locate additional supplies, which were needed for spot sales. In addition, more molten sulfur was going to prill facilities on the Gulf coast, and at least two vessels will be exported in the coming weeks.

On the world market, prices at Dubai were up in March, and prices were higher in China as well. The higher-priced material had not been delivered to end users, however, and it was unclear if that would hold.

Negotiations for new, second-quarter contract prices for molten sulfur delivered to Tampa should begin in about three weeks, and there was no clear pattern as to whether they will rise, fall, or remain the same.

Refinery capacity operating rates were up about 0.3 percent last week, from 83.6 percent to 83.9 percent, according to the U.S. DOE. The increased refinery rate has not transferred into lower gasoline prices at the pump because of exports of refined material.

Vancouver: Spot prices in China were on the increase last week, but a couple of sources said it appeared to be brokers accumulating positions, and the increases had not yet been passed on to end users there.

A vessel from Vancouver departing early this month will fetch about $170/mt FOB, which was unchanged from the previous month.

West Coast: West Coast prices continued to track the Vancouver market.

Market Notes

Bangladesh, Market Watch

Bangladesh: Prime Minister Sheikh Hasina is scheduled to formally lay the foundation stone of Bangladesh Chemical Industry Corp.’s (BCIC) Shahjalal Fertiliser Factory at Fenchuganj in northern Bangladesh by the end of this month.

The factory, with a capacity of producing 1,760 mt of urea and 1,000 mt ammonia per day, will be located adjacent to the existing state-run Natural Gas Fertiliser Factory (NGFF). The cost is US$594 million, 73 percent of which will be provided by China Exim Bank.

The Bangladeshi government has already awarded a contract to a Chinese firm, China National Complete Plant Export & Import Corp. Ltd., to implement the project. The Chinese firm started work in January 2012 and will complete the project by June 2015.

BCIC has six urea factories, but had to import urea from the Middle East and other countries to meet requirements due to gas shortages in the country.

Israel Chemicals Ltd. (ICL) – Management Briefs

Management Briefs

Israel Chemicals Ltd. (ICL) has made a number of management appointments in light of executive retirement plans. Mr. Yossi Shahar, 63, executive vice president, corporate development, since 2008, plans to retired March 31, 2012, while Nathan Dreyfuss, 60, vice president, finance, since 1994, plans to step down April 30, 2012.

Shahar will be replaced by Mr. Avi Doitchman, currently executive vice president and CFO, who will be appointed executive vice president, CFO and strategy, and will be responsible for corporate development, strategy and regulatory affairs. Doitchman will be assisted by ICL’s current controller, Mr. Amir Benita, 38, who will be promoted to the position of vice president, accounting; by Mr. Hezi Israel, 44, who will be promoted to the position of vice president, business development and strategy; and by Mr. Yakir Menashe, Adv., 40, who will be promoted to the new position of vice president, regulatory affairs and compliance. The latter is a new position that will be responsible for all of the company’s activities related to global regulations and enforcement issues, both in Israel and throughout the world.

Menashe has served as assistant to the CEO for the past six years. He holds a B.A. in Law from the College of Management, and worked previously for the law firm Efrati Galili and Partners, where he specialized in securities law, transactions, and mergers and acquisitions.

Most recently, Israel has served for the past five years as vice president, strategy and business development, for ICP Products Inc. He holds an M.B.A. from Tel Aviv University and a B.A. in Economics and Political Science from Tel Aviv University.

Benita has served during the past five years as ICL’s controller. Previously, from 2001-2009, he served as a lecturer for the College of Management, and as a senior manager for the Ernst & Young accounting firm. He is a CPA and holds a B.A. in Business Management from the College of Management.

Dreyfuss will be replaced by Michael Hazzan, 46, who will be promoted to the position of vice president, finance. Hazzan, a CPA, has worked in ICL’s finance department for 18 years, including five as the company’s group treasurer. He holds a B.A. in Economics from Tel Aviv University and an M.A. in Economics from Bar Ilan University.

Direct Solutions – Management Briefs

Management Briefs

Agrium Inc.’s Direct Solutions has added Brandon Green and Bob Raley its agronomy team. Green has over five years of hands-on turf management experience and recently completed his master’s degree in agronomy from Auburn University, where he focused on turfgrass management and nitrogen release characteristics as they pertain to turfgrass. In his new role, he will have responsibility for providing training and support for Agrium Advanced Technologies’ Experience at FarmLinks research and education program, while also supporting Direct Solutions’ internal and external customers in the southern U.S.

Raley has over 10 years of golf and turf grass management experience and holds a master’s degree in agronomy from Penn State University. He will provide training and support to Direct Solutions’ internal and external customers throughout the northern U.S. and Canada.

Direct Solutions is a distributor of slow- and controlled-release fertilizers, plant protection products, grass seed, and micronutrients for the horticulture and professional turf markets.

Driver dies in truck/train crash

News, News Briefs

Bartow, Fla. — The driver of a fuel truck making deliveries to The Mosaic Co.’s facilities at Bartow, Fla., was killed in an explosion and fire on March 7 after being struck by a train. Mosaic spokesman Russell Schweiss said the driver for Highlands Oil, whose identity had not been released, had just completed making deliveries of diesel fuel to Mosaic’s facilities on the north side of State Road 60 and was moving to other Mosaic facilities on the south side of SR 60 at the time of the accident. Witnesses said the train was sounding its horn, but the private road does not have a crossing arm. The crash did not take place on Mosaic property because the railroad, CSX Transportation, owned the right-of-way. The three crew members of the train were not injured, and authorities were in the process of confirming the identity of the truck driver though dental records. The train was equipped with a dash cam, which was protected from the flames similarly to a black box. Schweiss said Highlands Oil had served as a fuel supplier to Mosaic for a prolonged period and had a good safety record. Mosaic was cooperating with authorities in the investigation.

Florida considers lowering phosphate tax

News, News Briefs, Phosphate Rock

Tallahassee, Fla. — A bill being considered by the Florida Legislature would lower the severance tax the phosphate industry pays for rock mined in the state. Mosaic spokesman Russell Schweiss said the current rate included a surcharge that was requested by the industry to cover costs associated with the closing of processing plants formerly owned by Mulberry Phosphates, which declared bankruptcy and abandoned the facilities several years ago. The clean-up program that followed was paid for by the severance tax, which was raised at that time. The change would essentially end the surcharge.

USDA pays $619/st for potash

News, News Briefs, Potash Muriate

Washington — The U.S. Department of Agriculture (USDA) has awarded a contract for white potash (GM Jan. 9, p. 8) to Farm and Home Inc., Sykeville, Md., for $29,712, buying some 48.14 st at $619/st DEL. USDA had sought two trailer loads, each estimated at 22-24 tons, to be delivered all at once to Beltsville, Md., by March 1, 2012. USDA said this award was evaluated based on the lowest price that is technically acceptable. The purchase was exclusively reserved for small businesses. USDA told Green Markets the product would be used on crop ground for corn, soybeans, and alfalfa. The Green Markets Dealer Report price for the Northeast, which would include Maryland, is $570-$590/st DEL, with the top end for white granular – this from producers or resellers. While $619/st DEL for a small quantity from a "small business" is higher, it is going to the farmer end-user even if it is the USDA, and may not be out of line. The last PCS Sales posting to Maryland, effective July 1, 2011, was $610 rail-DEL for granular potash and $600/st FOB Baltimore.