CHS Inc., St. Paul, and Northern Partners Cooperative, Mendota, Ill., announced Jan. 21 that CHS will build a 47,000 ton capacity fertilizer warehouse with product blending capabilities that will be operated by Northern Partners Cooperative. In addition, the two companies will form a joint venture to build and operate a grain barge loading facility that will handle corn, soybeans and wheat for export through the CHS terminal at Myrtle Grove, La.

Northern Partners Cooperative will use the terminals at Peru primarily to serve farmer-owners of its retail business with nitrogen, phosphorus and potassium fertilizers and to facilitate grain handling. CHS will serve its nearby cooperative wholesale fertilizer and grain customers from these facilities.

"These new assets will give our member-owners direct access and ownership in the supply and distribution chain, bringing them a step closer to world markets," said Eric Anderson, general manager, Northern Partners Cooperative. "These new state-of-the-art facilities will help provide a more stable, dependable source of crop nutrients, as well as a cooperative presence in the grain export market which will add value to our member-owners’ farming operations."

"We are pleased to partner with CHS, the nation’s leading cooperative in this venture. While we are very different in size, our core values are very similar. Both companies work to provide relevant, valuable products and services to member-owners," Anderson said.

Anderson also expressed gratitude to local government officials for their support and expertise. "We look forward to working with Mayor Scott Harl and the City of Peru to bring jobs and economic development to benefit the Illinois Valley, and we appreciate their many efforts to help us establish this new venture," Anderson said.

"CHS is always looking for strategic investments and partnerships that create additional growth opportunities for its farmer-owners and this agreement with Northern Partners Cooperative does just that," said Rick Dusek, CHS vice president, Ag Business. "It allows CHS to expand its grain origination with direct Illinois River access and it enables further growth of our fertilizer business by adding infrastructure that is critical to timely and reliable fertilizer supply and delivery."

Construction will begin early in 2015 and is expected to be completed in the spring of 2016.  When the plant is operational, Anderson said approximately eight new employees will be hired.

Formed in 2009 through the merger of four area cooperatives, Northern Partners Cooperative is a farmer-owned grain, agronomy and energy cooperative located in North Central Illinois. Its 70 employees serve more than 900 customers from eight locations in four counties.

Bowing to pressure caused by reports of urea shortages, MMTC called a tender for prilled or granular urea to close Jan. 27 with validity through Feb. 4. The last date for shipping is March 13.
   
Indian media have been full of stories of complaints of urea shortages from places around the country. In response, local politicians have been leaning on the national government to increase the amount of urea available for the end of the current application season. International traders said just last week that once the last of the IPL tons arrive the complaints of shortages would cease.
   
Sources say Chinese producers immediately began asking higher prices in response to the tender call.
   
Blue Deebaj remains blacklisted from Indian tenders because of its failure to come through with its award after Chinese producers raised the price of the product. Continental and Emmsons are also on what MMTC calls the “holiday list” for the same reason.

The Mosaic Co. on Jan. 19 upgraded its fourth quarter 2014 outlook. Mosaic said it expects reported phosphates volume and phosphates and potash margins will exceed previously provided guidance ranges, and that potash volumes will be at the high end of guidance range, resulting in fourth quarter 2014 earnings per diluted share in the range of $0.93 to $0.98 per share, including approximately $0.10 in net benefits from notable items. The notable items include early estimates of discrete tax benefits, primarily related to the acquisition of a Brazilian distribution business, which may change. Mosaic expects earnings, excluding notable items, to be in the range of $0.83 to $0.88 per share.
 
"Demand for potash and phosphates exceeded our expectations during the fourth quarter," said Jim Prokopanko, president and CEO. "We were cautiously optimistic going into the fall application season with good crop nutrient affordability and an empty supply chain, but customers came to the market in force, as they sought to position inventory in anticipation of a strong spring season and increasing crop nutrient prices.

"At Mosaic, we were prepared to meet the surge in demand, and our results for the quarter reflect the earnings power our business can deliver in good markets. Our Phosphates business sold 3.3 million mt of finished product during the quarter – well above our expectations – and our Potash business produced at a high operating rate due to a successful proving run at the Colonsay mine.

"We expect further business strength as we move into 2015, with strong demand for potash and phosphates continuing. We expect the first quarter of 2015 to reflect normal seasonal spring demand, minimally impacted by accelerated purchases in the fourth quarter of 2014, and are excited for the opportunities we see in the coming year."

The company will discuss fourth quarter 2014 results in more detail, as well as first quarter and full year guidance for 2015, during the earnings release Feb. 11, 2015.

Major players have concluded February business for the Tampa ammonia market at $495/mt CFR, down $50/mt from January’s $545/mt CFR. Sources had been anticipating a continued drop.

Canpotex Ltd. has entered into a new three-year Memorandum of Understanding (MOU) with Sinochem Fertilizer Macao Commercial Offshore Ltd. to supply a minimum of 1.9 million mt of red standard grade potash during the term of the MOU.  In addition, Sinofert has the option to purchase up to 2.4 million mt (800,000 mt/y) of other grades of Canpotex potash during the term of the MOU. Pricing will be negotiated every six months (January to June and July to December), based on market conditions.

The MOU covers the period January 1, 2015 to December 31, 2017 and is designed to encourage future growth in new Canpotex product grades and new market regions in China as it provides exclusivity to Sinofert for Canpotex red standard grade potash only, provided Sinofert exercises the annual minimum purchase requirements.

Steve Dechka, Canpotex’s president and CEO, stated that this agreement signifies Canpotex’s ongoing commitment to the growing China market.

"Canpotex is proud of its long-term trusting relationship with Sinofert, and this agreement demonstrates the confidence we continue to have in that partnership. We have been supplying Saskatchewan potash to China since 1972, and with this agreement we will continue to be a leading supplier to this growing market,” stated Dechka. “Canpotex is committed to making an important contribution to global food security and meeting China’s growing potash needs."

Sanctions have ended at Dead Sea Works and potash is now being shipped from the plant at Sdom. This follows an agreement reached at the Beer Sheba Labor Court whereby Israel Chemicals Ltd. agreed to withdraw the dismissal notices sent to 134 workers at Dead Sea Works.

ICL is to return to the negotiating table for intensive talks with the union over a proposed reorganization at ICL.

Haifa Chemicals, which shut down its operations at its plants in Haifa and Mishor Rotem due to a lack of potash supplies, announced that production would resume at both plants by the end of today. A Haifa spokesman said that production in recent weeks had been impacted by the sanctions but that the company was able to supply customers abroad with potassium nitrate from existing inventories.