NOLA DAP barges were up this week to $490-$500/st FOB, which is reflected on the page 4 price scan and page 8 market report. The spot box on the page 1 should have also ran the $490-$500/st price.
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Pinnacle announces three more retail acquisitions
Pinnacle Agriculture Holdings LLC has announced three more agribusiness acquisitions, adding M.B. Darby Warehouse Inc. in Arnaudville, La., Rupert Crafton Commission Company in Blytheville, Ark., and East Bernard Milling Company in East Bernard, Texas, to its rapidly growing list of retail locations.
Darby Warehouse is a farm input, fertilizer, and supply company that has been serving area growers in Louisiana for more than 50 years. The company will operate as part of Pinnacle’s Sanders brand, and will remain at its 124 Canal Street location in Arnaudville. The facility will be managed by Dr. David Lanclos, who worked for LSU AgCenter and Syngenta before joined Sanders in August 2013.
Former owners Joseph and John Darby will remain on staff as outside sales representative and operations manager, respectively. All other employees of Darby Warehouse will retain their current positions under the new ownership.
“It’s a pleasure to announce our partnership with Pinnacle and Sanders, as we feel certain that our long-time customers and employees will benefit from the additional resources and tools that they bring,” said John Darby.
Darby Warehouse is Sanders’ tenth retail location in southern Louisiana, all of which offer custom fertilizer blends, seed, crop protection products, and precision agriculture services through Sanders’ proprietary OptiGro® system.
“Pinnacle and Sanders are very pleased with this acquisition, and we look forward to continuing the excellent service that the Darby family has provided area producers for over half a century,” said Wayne Hensgens, Sanders area operations manager. “The team that we have assembled in Arnaudville, led by David and the Darby brothers, will offer area growers the latest in agronomic field expertise.”
Crafton Commission in Blytheville, a farm input business founded in 1957 that provides seed, fertilizer, and farm chemicals to area growers, will also operate as part of Pinnacle’s Sanders brand. The business will remain at 2701 West Main Street, and will be managed by Michael White, who has been with Craft Commission since 1989.
Rupert Martin “Buzz” Crafton, former owner of Crafton Commission and son of the company’s founders, will remain on staff as a consultant and customer liaison. All other employees of Crafton Commission will retain their current positions.
“This is a win-win for everyone involved,” White said. “Our long-time customers and employees will benefit from the additional resources and tools that Pinnacle and Sanders bring. Pinnacle and Sanders will benefit from the addition of a great customer base and staff that have served those customers faithfully for so many years. We are excited to associate our reputation and business with an equally respected company like Pinnacle.”
Crafton Commission is Sanders’ seventh retail location in its North Arkansas Division, which currently includes facilities at Bono, Bowman, Cash, Leachville, Otwell, and Valley View.
“Pinnacle and Sanders are very pleased with the recent acquisition of this well-established, respected business, and we are excited about its staff joining our team,” said Will Elkins, Sanders area operations manager. “We look forward to continuing the excellent service that Michael White and the Crafton family have provided area farmers for over half a century.”
Pinnacle’s acquisition of East Bernard Milling Company brings the company’s retail presence in southeastern Texas to six. Founded in 1954 as a feed and pasture services business, East Bernard Milling will operate as part of Pinnacle’s Sanders brand, joining other Sanders facilities at Combes, Hearne, Knippa, Marlin, and Taft.
The East Bernar
Worker killed in ammonia incident
The death of a Midwest Farmer’s Co-op employee in what is reported to be an anhydrous ammonia explosion at a Tecumseh, Neb., grain elevator, has been confirmed by the County Attorney’s office and the chief executive officer of Midwest. Midwest CEO Dale Piper at Elmwood told Green Markets the man identified as John Bennett of Greenwood was a truck driver for the company. A fellow employee was also injured, though not seriously, but is still in the Johnson County Hospital. The incident occurred in the early evening Thursday, March 20.
Mosaic cuts 51 jobs
The Mosaic Co. confirmed today that it gave layoff notices to some 51 workers across Saskatchewan on Monday, March 24. The job cuts were spread across the province, to mines at Belle Plaine, Colonsay and Esterhazy to company offices in Regina. The company cited market conditions and said the jobs represent less than 2 percent of its Saskatchewan workforce.
The Week in Fertilizer Stocks
The Week in Fertilizer Stocks
| Producer | Symbol | Price | Week Ago | Year Ago |
| Agrium | AGU | 93.78 | 93.43 | 100.32 |
| CF Industries | CF | 251.45 | 251.53 | 196.50 |
| CVR Partners | UAN | 20.84 | 20.97 | 24.80 |
| Intrepid Potash | IPI | 14.98 | 15.04 | 19.02 |
| Mosaic | MOS | 49.04 | 47.66 | 61.47 |
| PotashCorp | POT | 34.53 | 34.14 | 40.19 |
| Rentech Nitrogen | RNF | 17.90 | 18.04 | 36.07 |
| Terra Nitrogen | TNH | 155.59 | 159.31 | 218.25 |
| Distribution/Retail | ||||
| Andersons Inc. | ANDE | 56.55 | 55.45 | 52.17 |
| Deere & Co. | DE | 87.57 | 87.98 | 87.74 |
| Scotts | SMG | 59.93 | 58.60 | 45.00 |
Spot Barge Prices
Additional Magnida details revealed
A proposed air quality permit that would allow Magnida Inc. (Magnolia Nitrogen Idaho) to build and operate a $2 billion nitrogen fertilizer plant on 540 acres near American Falls has been reviewed by the Idaho Department of Environmental Quality (IDEQ). IDEQ has determined construction and operation according to the permit would not cause or significantly contribute to violating any ambient air quality standard and would not injure or unreasonably affect human life, animal life, or vegetation.
The plant would use 85 million standard cubic feet of natural gas per day as a feedstock to produce up to 2,500 st/d of liquid ammonia for use in making up to 4,100 st/d of granulated urea, up to 2,900 st/d of UAN, and up to 1,050 st/d of diesel exhaust fluid (DEF). DEF is 32.5 percent urea solution and 67.5 percent water by weight.
There may be periods when only ammonia is produced, the application said. The complex will include an elevated, open flare serving both an ammonia plant and a urea plant. A granular urea warehouse will be able to store 112,500 st.
The plant will include 16 storage vessels. An ammonia storage tank’s capacity will be 33,000 tons. Nitric acid will be stored in a tank of 444,000 gallons. UAN solution will be stored in four tanks, each with a capacity of about 9.8 million gallons. DEF will be stored in one tank with a capacity of about 6.5 million gallons. Three tanks will store diesel and gasoline. Six will store raw materials.
The application showed Magnida planned to start on-site construction activities later this year on land zoned heavy industrial next to ConAgra’s Lamb-Weston potato processing plant. The company plans to start operating the fertilizer plant in 2017. It acquired senior industrial water rights for about 5.5 million gallons of groundwater per day from FMC, which closed its elemental phosphorus plant in east Power County about 13 years ago.
Magnida officials have said the company has secured $500 million for a down payment, but still needs to confirm $1 billion to $1.5 billion in additional financing by December for the project to proceed.
The application noted the Magnida plant is not suitable for permanent carbon dioxide storage. Capture of CO2, however, from a stripping unit is considered technically feasible. Magnida estimates carbon capture and storage will run about $26 million per year.
Sulfuric acid will be used for treating water used for cooling purposes and as process feedstock. Two wet cooling towers would have nominal capacity of 121,000 gallons and 985 gallons per minute.
It is anticipated the project will employ an average of 1,500 workers during the three years of construction. Upon completion of construction, about 175 skilled permanent jobs will be created for the plant’s ongoing operation. Including indirect and induced job growth, the plant may increase local employment by as much as 300 to 400 permanent jobs.
Facility-wide air emissions from Magnida’s plant would include four tons per year of sulfur dioxide, 34 t/y of hazardous air pollutants, 83 t/y of volatile organic compounds, 140 t/y of carbon monoxide, 170 t/y of nitrogen oxides, 346 t/y of ammonia, 446 t/y of particulates and 1.94 million t/y of greenhouse gases, the permit application states.
IDEQ is seeking public comment on the proposed permit. A public hearing for written and oral comments will be at 5:30 p.m. April 2, at the American Falls Public Library. The deadline for submitting written comments to IDEQ is 5 p.m., April 4.
Ukrainian billionaire to pay high bond
Vienna—Ukrainian billionaire Dmytro Firtash, 48, arrested here March 12 (GM March 17, p. 12) was not expected to make bond until Friday, March 21, according to Bloomberg. Firtash expressed difficulty in raising the $174 million in bail, reportedly the highest bond ever fixed in Austria. He was arrested under a warrant issued by the U.S. FBI, which is seeking his extradition. Firtash, who owns several businesses including nitrogen market Ostchem, has called the arrest politically motivated.
Agrium awards two contracts to KBR
Houston—KBR said March 12 that Agrium Inc. has awarded the company two engineering, procurement, and construction (EPC) contracts for a new grassroots urea plant and to increase the ammonia capacity for Agrium’s Lone Star Project in Borger, Texas. Upon completion, the world-scale facility will produce approximately 670,000 tons of urea per year and 700,000 tons per year of ammonia. The contract values, which were not disclosed, were included in the 2013 second and third quarter backlog of unfilled orders for the Hydrocarbons segment.
Tampa NH3 takes big jump
Tampa ammonia prices for April took a huge jump to $580/mt CFR from the March $460/mt CFR. Observers expected a significant boost, citing higher international prices in recent weeks.