Norcross, Ga.—Toros Tarim has joined the International Plant Nutrition Institute (IPNI). Ms. Esin Mete, CEO of Tekfen Holding’s Agri-Division and chairwoman of Toros Agri-Industry Group, was elected to serve on the IPNI board. Toros Tarim produces fertilizer from its Ceyhan, Mersin, and Samsun facilities, which presently hold 38 percent of the established production capacity in Turkey.
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LSB signs ammonia plant agreement
LSB Industries Inc. is firming up its plans to build an anhydrous ammonia plant at El Dorado, Ark., announcing that its Chemical unit has entered into an agreement with SAIC Constructors LLC to construct a 375,000 st/y ammonia plant at an LSB subsidiary’s site in El Dorado.
The agreement provides for SAIC to provide certain engineering services and to manage the construction of the ammonia plant and associated facilities. The obligations under the agreement are guaranteed by each party’s parent company.
The total cost of the ammonia plant project is estimated to be $250-$300 million, including additional support facilities that are not covered by the agreement and work to be performed under the management of LSB.
The ammonia plant project is expected to be completed by the end of 2015, subject to timely receipt of environmental permits and assuming no unexpected delays.
LSB will fund the construction of the ammonia plant and support facilities from the net proceeds of the $425 million Senior Secured Notes completed on Aug. 7, 2013.
Jimmy Sanders acquires Mayfield Grain assets
Pinnacle Agriculture Holdings LLC, through its subsidiary Jimmy Sanders Inc., has acquired the seed, fertilizer, and crop protection assets of Mayfield Grain Company Inc. in Mayfield, Ky. Sanders said the acquisition will enhance its retail presence in the western Kentucky market, and increases its Kentucky footprint to eight full service retail locations and one dedicated wholesale facility.
“We are very excited about the recent acquisition. Mayfield Grain is a long-established, respected business with similar company values and goals of grower success,” said Chris Drummond, Sanders Bluegrass Division business director. “Here at Sanders, we are also committed to innovation and delivering new solutions to our farmers. So, we are confident that the community Mayfield Grain has served so well will experience a seamless transition and continue to receive exceptional service.”
Mayfield Grain was founded in1986 as a grain storage facility, but expanded over the years to become a full-service agricultural dealer offering seed, fertilizer, crop protection products, and select precision agriculture services.
Sanders Mayfield will be managed by David Guthrie and will be located at 521 South 16th Street in Mayfield. The grain elevator and grain marketing enterprise assets will remain part of Mayfield Grain, and will continue operating at the 622 Allen Street address in Mayfield, and also at 2559 Ste. Rte. 94 West in Wingo, Ky.
“I am very pleased to welcome Mayfield Grain into the Pinnacle family,” said Barry Knight, chief compliance officer at Pinnacle. “Mayfield Grain has been successfully serving western Kentucky growers for over two decades. Under the Sanders umbrella, we look forward to continuing this tradition. We are committed to focusing on the growers’ success as we do across the Sanders organization.”
Established in 1953, Jimmy Sanders is headquartered in Cleveland, Miss., and currently serves Mid-South growers through 108 locations in 10 states. The company formed a strategic partnership in 2012 with Pinnacle Agriculture Holdings to pursue the development of a national agricultural input distribution network (GM Sept. 17, 2012).
Pinnacle was established in 2012 by Apollo Global Management LLC, the investment firm that formed UAP Holding Corp. after purchasing United Agri Products North America from ConAgra Foods Inc. in 2003 (GM Nov. 3, 2003). Apollo subsequently sold UAP Holding Corp to Agrium Inc. in 2007 (GM Dec. 10, 2007).
The Week in Fertilizer Stocks
The Week in Fertilizer Stocks
| Producer | Symbol | Price | Week Ago | Year Ago |
| Agrium | AGU | 87.26 | 83.48 | 96.88 |
| CF Industries | CF | 191.91 | 195.98 | 207.43 |
| CVR Partners | UAN | 19.49 | 22.46 | 24.63 |
| Intrepid Potash | IPI | 12.96 | 13.07 | 21.72 |
| Mosaic | MOS | 43.48 | 41.88 | 58.01 |
| PotashCorp | POT | 30.76 | 29.48 | 42.56 |
| Rentech Nitrogen | RNF | 28.62 | 32.64 | 32.63 |
| Terra Nitrogen | TNH | 220.72 | 218.13 | 235.78 |
| Distribution/Retail | ||||
| Andersons Inc. | ANDE | 63.84 | 59.80 | 37.87 |
| Deere & Co. | DE | 82.32 | 83.05 | 79.17 |
| Scotts | SMG | 53.18 | 51.86 | 41.29 |
CSX acquires Tampa phosphate export terminal
Jacksonville, Fla.–CSX Corp. has announced the purchase of the Eastern Associated Terminal in Tampa, Fla. from the Ingram Barge Co. The phosphate export facility is adjacent to CSX Transportation Inc.’s Rockport terminal on Tampa Bay, and the combined entity will be called Rockport Terminals. Shantel Johnson-Davis, who has led CSX’s phosphates sales and marketing efforts in Tampa, was appointed assistant vice president and general manager – phosphates and fertilizers, and will lead both commercial activities and operations at Rockport Terminals. “Purchasing the Eastern terminal provides strategic long-term value for CSX,” said Johnson-Davis. “We will leverage synergies of the two terminals to better serve our customers and grow this important business.” Rockport Terminals are deep-water port facilities on Tampa Bay used for exporting phosphate from Central Florida’s Bone Valley mining region. These facilities are located on more than 300 acres with over 25 miles of track, warehousing and state of the art loading systems. CSX says the footprint of the combined terminals allows for quick, scalable expansion, and capacity for 1 million additional export tons. Rockport Terminals will seek additional commodity export opportunities and add import bulk business over time. As a result of the acquisition, CSX added 12 new positions for terminal operations to Rockport’s current staff of 25. CSX has over 300 employees in the Tampa area.
Yara, Bunge close on Brazil deal
Oslo—Yara International ASA has announced that it has closed on the purchase of the bulk of Bunge Ltd.’s Brazilian fertilizer business. Yara says with a capacity of 32 blending units and three production sites, the new combined Yara Brazil is present in all the key agricultural production areas and segments, and is well positioned for continued growth. The transaction is valued at US$750 million. Through a long-term supply agreement with Yara, Bunge will continue to supply fertilizer to farmers in Brazil as part of its grain origination activities. Bunge will also continue to operate its fertilizer terminal in the Port of Santos.
Spot Barge Prices
USDA forecasts record U.S. corn production
USDA on Aug. 12 predicted U.S. corn production for 2013 at 13.8 billion bushels, up 28 percent from 2012 and a new record for the U.S, if realized. USDA’s Crop Production report says corn yields are expected to average 154.4 bushels/acre based on conditions as of Aug. 1, the highest average yield since 2009 and up some 31 bushels/acre from the drought-ravaged 2012 corn crop.
The report estimates the total corn area harvested for grain this year at 89.1 million acres in the U.S., unchanged from the June forecast but up 2 percent from 2012.
U.S. soybean production is forecast at 3.26 billion bushels, up 8 percent from last year and the third largest on record, if realized. Based on Aug.1 conditions, soybean yields are expected to average 42.6 bushels/acre, up 3 bushels/acre from last year and the fifth highest on record. Soybean area for harvest is forecast at 76.4 million acres, down less than 1 percent from June but up slightly from 2012. USDA estimated the total planted soybean area at 77.2 million acres, down less than 1 percent from June.
All U.S. cotton production is forecast at 13.1 million 480-pound bales, down 25 percent from last year, and cotton yields are expected to average 813 pounds/harvested acre, down 74 pounds/acre from 2012. USDA said U.S. growers expect to harvest 7.70 million acres of all cotton this year, down 18 percent from 2012.
All U.S. wheat production, at 2.11 billion bushels, is up slightly from the July forecast but down 7 percent from 2012. Based on Aug. 1 conditions, USDA estimated the average wheat yield this year at 46.2 bushels/acre, unchanged from last month but down 0.1 bushel/acre from last year.
Intrepid announces lower potash postings
Effective Aug. 9, Intrepid Potash lowered its Carlsbad, N.M., muriate of potash postings to $395/st FOB for 60 percent standard, $400/st FOB for 62 percent standard and 60 percent granular, and $407/st FOB for 62 percent granular and 62 percent Super Sol.
Intrepid’s muriate of potash postings at Moab and Wendover, Utah, also dropped on Aug. 9, with 60 percent standard moving to $415/st FOB and 60 percent granular to $420/st FOB.
Agrium reports 2Q earnings
Agrium Inc. reported a 13 percent in drop in net earnings for the second quarter ending June 30, 2013 to $747 million ($5.02 per diluted share) on sales of $7 billion, down from the year-ago $860 million ($5.44 per share) on sales of $6.77 billion.
While volumes remained strong, lower prices for some products impacted results, particularly urea, phosphates and potash, with other products—ammonia and ammonium sulfate showing higher pricing.
Total Retail crop nutrient volumes were up at 4.1 million mt from the year-ago 3.74 million mt, while Wholesale saw a slight drop to 2.89 million mt from 3 million mt.
Six-month net income was also off 13 percent to $888 million ($5.96 per share) on sales of $10.2 billion down from the year-ago $1 billion ($6.41 per share) on sales of $10.3 billion.