Innophos Holdings Inc.
Innophos Holdings Inc. has announced that Louis Calvarin, senior vice president, strategy, and chief risk officer, has left the company after 30 years of service.
All Posts from April 1, 2016
Trupointe Cooperative Inc.
Larry Hammond, president and CEO of Trupointe Cooperative Inc. in Piqua, Ohio, announced that he will retire on Aug. 31, 2016, just prior to the Sept. 1 effective merger date (GM March 11, p. 1) between Trupointe and Sunrise Cooperative, Fremont, Ohio. Hammond began his career in 1992 with Trupointe predecessor Auglaize Farmers. Under his leadership, Trupointe grew to more than 400 employees and 24 locations serving some 4,200 members across western Ohio and eastern Indiana. Trupointe said Hammond significantly increased the net worth of the company during his tenure, from $3 million in 1992 to $113.4 million in 2016.
George Secor, president and CEO of Sunrise, will continue as president of the newly combined co-op, which will operate under the Sunrise Cooperative name from corporate offices in both Fremont and Piqua. The combined business will operate more than 40 facilities with more than 400 full-time employees, and will begin operations with projected total sales of just under $900 million. Products and services will be provided in agronomy supply, animal nutrition, grain marketing, power fuels, propane, and turf and ornamental.
The Andersons sells eight Iowa locations
Maumee, Ohio—The Andersons Inc. announced April 1 that it has signed an agreement to sell eight of its facilities in Iowa to MaxYield Cooperative of West Bend, Iowa. “We have referenced performance issues in our western grain assets during several recent investor calls. We anticipate this sale will improve our prospects and provide a pathway to profitability for this area of our business,” said CEO Pat Bowe. “We believe MaxYield will capably continue to serve the needs of the growers in this region and make good use of these assets in Iowa.” The Andersons acquired the eight grain and agronomy locations as a part of its 2012 acquisition from Green Plains Grain Co. The Tennessee assets acquired during that same transaction will remain a part of The Andersons. This transaction does not divest or otherwise involve the company’s ethanol facility or recently-acquired Nutra-Flo facilities in Iowa. “We are excited about the opportunity to expand our presence in an area already served by MaxYield,” said Howard Haas, MaxYield Cooperative board chairman. “MaxYield currently has facilities in 17 rural communities and has 1,700 members, many of which will have increased access to grain, agricultural inputs and services as a result of this transaction.” MaxYield is a member-owned, fully diversified agricultural cooperative founded in 1915. In addition to its 17 locations, it has three Cenex convenience stores in Iowa. It also provides grain origination and accounting services for two Iowa feed mills.
Deere announces jv with Hagie Manufacturing
Moline, Ill.—Deere & Company announced on March 29 that it has entered a joint venture with Hagie Manufacturing, a maker of high-clearance sprayers. Under terms of the agreement, Deere acquires majority ownership of Hagie, which will continue producing sprayers at its current location in Clarion, Iowa. Equipment made by the joint venture will continue to carry the Hagie brand, while sales and service for Hagie equipment will be integrated into Deere’s global distribution channel over the next 15 months. “Hagie Manufacturing is known for innovation and its strong customer understanding in high-clearance spraying equipment,” said John May, president, Agricultural Solutions and Chief Information Officer at Deere. “High-clearance spraying equipment is a new market for Deere. The expertise at Hagie allows John Deere to immediately serve customers who need precision solutions that extend their window for applying nutrients.” May said the joint venture investment allows John Deere to provide a broader range of sprayer options and integrate Deere’s precision technology into the Hagie equipment to help customers reduce costs and improve yields. “We have great products at Hagie that help producers be more profitable, but we need a business model that helps us reach more customers,” said Alan Hagie, Hagie CEO. “This partnership with Deere allows our solutions to reach customers on a global scale and ensure they are supported with the world-class Deere dealer organization.”
Activist shareholder exits LSB
New York—Activist shareholder Starboard Value LP, which demanded change and got it at LSB Industries Inc., has exited its holding in the company. Much of the change had to do with reconstituting the board of directors and revolved around Starboard’s concerns that the company was being run like a small family business (GM Sept. 7 and 14, 2015). Starboard sold its last 1.61 million shares as of Dec. 31, 2015, according to recent filings with the U.S. Securities and Exchange Commission.
Rentech and CVR complete merger
Los Angeles—Rentech Nitrogen Partners LP said April 1 that it has completed its merger with CVR Partners LP. Rentech Nitrogen and CVR Partners entered into a definitive merger agreement on Aug. 9, 2015, pursuant to which CVR Partners agreed to acquire all of the common units of Rentech Nitrogen (GM Aug. 17, 2015). Under the terms of the transaction, each eligible Rentech Nitrogen common unit issued and outstanding immediately prior to the closing was automatically converted into the right to receive 1.04 units of CVR Partners and $2.57 in cash. Prior to the close, Rentech sold its Pasadena, Texas, facility to a unit of Interoceanic Corp. (GM March 18, p. 1). CVR will take Rentech’s East Dubuque, Ill., nitrogen facility. With the completion of the merger, Rentech Nitrogen is no longer being traded on the New York Stock Exchange.
OCP reported to be eyeing K investment
Casablanca—OCP SA is reportedly looking to acquire or buy into a potash project, particularly in Africa. Such a move to secure its own source of potash would be in line with the company’s ongoing strategy to diversify its product portfolio through the development of new products, including various grades of NPKs and NPK micronutrients, and to further its expansion in high growth markets such as Africa. Additionally, through its newly-established OCP Africa subsidiary, OCP has stated plans to establish, internally and through local partners, blending facilities in a number of sub-Saharan African countries (GM Feb. 26, p. 16). According to Africa Intelligence, OCP in recent weeks has been evaluating some of the continent’s potash developments, including Elemental Minerals’ Kola sylvinite project in the Republic of Congo, for which a pre-feasibility study and phased implementation study have been completed, as well as projects being developed on Ethiopia’s Danakil Depression. For Kola, a mining license for an underground mine and ESIA approval were granted in August 2013. Currently, Elemental is planning a tie-up with Australian private equity group Summit regarding a US$50 million equity investment. The Highfield Resources’ Muga project in Spain is another project the Moroccan fertilizer company is said to be interested in, according to Africa Intelligence. Nor is OCP overlooking the resources of its own country. Early last year, the company is understood to have issued a call for bids to explore Morocco’s own potash resources, which include the Khemisset evaporite basin. OCP had not responded inquiries by press time. OCP started to produce and sell new products in 2011, and since then has developed 25 new formulations of NPK, NP-S, and micronutrients, with sales of all new products, including feeds and water soluble MAP 11-62, reaching 1.193 million mt in 2015, up from 796,000 mt in the previous year. The company is targeting high growth markets – notably Africa, which accounted for 24 percent of its total fertilizer exports last year.
Sulfur
Tampa: Domestic sulfur players described no major changes in the North American market heading into the second quarter.
Settlement talks for the contract price of molten sulfur delivered to Tampa are expected to begin soon – “probably” next week, sources said – and will kick off against a backdrop of international market weakness and prolonged price erosion.
The first-quarter contract price of $95/lt is universally expected to tumble in the second quarter, with landing spots generally predicted in the $65-$75/lt range.
Middle Eastern producers began sliding into the upper $70s/mt with Tasweeq’s newly-announced April pricing, a shift based on Chinese spot market values quoted in the $80s/mt CFR heading into the second quarter.
Additionally, sources said swelling supply in the U.S. Gulf, a byproduct of rising refining rates and the processing of greater quantities of sour crude, could pressure Tampa further.
Some observers went so far as to characterize Gulf pricing as the ultimate leading indicator for Tampa contracts in 2016. “(Tampa) depends on what happens with the U.S. Gulf export price,” said one contact.
Refinery utilization grew last week, according to the U.S. Energy Information Administration (EIA). Capacity stood at 90.4 percent for the week ending March 25, a 2.0 percent increase from the previous week’s 88.4 percent, and also ahead of the year-ago 89.4 percent and the five-year average of 87.5 percent.
Average daily inputs were markedly higher at 16.234 million barrels/d, a 414,000 barrel/d hike from the previous week’s 15.820 million barrels/d.
U.S. Gulf: Market watchers continued to report Brazilian bids in the $70s/mt CFR last week, but sources believed deals had yet to be struck at those levels. Last-done was called in the $70-$75/mt FOB range, unchanged from last report.
Vancouver: Last-done sales on the Vancouver spot market were unchanged at $75-$85/mt FOB, sellers said. Contract pricing continued to run even with spot.
Alberta producer netbacks were reported flat at (-)$27-$60/mt FOB.
Last-done at China was called in a range of $80-$85/mt CFR.
West Coast: West Coast formed sulfur was unchanged for the week. Sources put price ideas at $70-$80/mt FOB.
California molten contracts fell in the $65-$115/lt FOB range for the first quarter, but a drop in international pricing was expected to push second-quarter values lower. Market watchers speculated that an average $20/lt drop was likely.
ADNOC: The March price of Abu Dhabi National Oil Co. prill was $88/mt FOB Ruwais, $17/mt below February levels of $105/mt. ADNOC had not released updated April pricing as of March 31, but sources expect a downward move for the new month.
Aramco: Saudi Aramco sulfur was offered at $85/mt FOB Jubail for April loading, $5/mt below the March price of $90/mt FOB.
Tasweeq: Qatar state-owned sulfur producer Tasweeq reduced pricing for formed sulfur last week, offering cargoes at $78/mt FOB Ras Laffan for the month of April. The new pricing represents a drop of $9/mt from $87/mt in March.
Sulfuric Acid
U.S. Gulf: Sources reported a quiet Gulf import market for the week, despite an uptick in industrial demand. Price ideas continued to be reported in the $35-$45/mt CFR range.
Cargoes bound for Brazil were expected to be valued at $35-$45/mt CFR, while sources put the Chilean market in a $45-$60/mt CFR range.
A June deadline to close Alcoa Inc.’s Intalco aluminum smelter near Ferndale, Wash., could be pushed back thanks to a $3 million earmark inserted into the final draft of the Washington state budget, local reports said. The updated budget is expected to be signed into law.
Newly bullish sentiment in the international aluminum market may have played a part in the increased state support, some speculated, thanks in part to aluminum prices recently posting a five-month high in China.
Alcoa officially closed its 269,000 mt/y Warrick County aluminum smelter at Evansville, Ind., on March 24, concluding a shutdown plan laid out in January.
Metals were softer on the London Metal Exchange last week. Aluminum, copper, lead, nickel, and zinc closed lower on March 30 compared with the week before.
Aluminum was $1,478.00/mt, down slightly from $1,480.00/mt a week earlier, and copper was worth $4,940.00/mt, lower than the prior week’s $5,060.50/mt.
Lead values shrank to $1,738.00/mt from $1,795.00/mt at last report, and nickel notched $8,425.00/mt versus $8,625.00/mt the week before. Zinc was lower as well, closing at $1,791.50/mt, down from the previous week’s $1,855.00/mt.
Crops/Weather
Grain Futures: As of 4:00 p.m. on March 31, soybean and wheat futures were higher compared to the week before, but corn was down.
Corn contracts for May 2016 clocked in at $3.515/bushel, a fall from the previous week’s $3.70/bushel. December 2016 corn slipped to $3.6875/bushel from $3.8725/bushel at last report, while corn for March 2017 was $3.7825/bushel, down from $3.955/bushel the week before.
The May 2016 soybean price rose slightly, to $9.1075/bushel from $9.105/bushel the week before. Soybeans for November 2016 were $9.2475/bushel, up from $9.2275/bushel at last report, and January 2017 soybeans firmed to $9.285/bushel from $9.265/bushel the week before.
Wheat for July 2016 was $4.87/bushel, up from the previous week’s $4.8275/bushel, while September 2016 wheat firmed to $5.01/bushel from $4.9625/bushel at last report. Contracts for July 2017 wheat were listed at $5.4625/bushel, up from $5.4025/bushel the week before.
Eastern Cornbelt: The final days of March brought an increasing chance of severe weather to much of the Eastern Cornbelt, with reports of strong thunderstorms moving through northern Illinois and northern and central Indiana as the week progressed.
Local news stories talked of powerful straight-line winds and hail in parts of the region on March 31, with cooler weather on tap for the first of April. Weekend weather forecasts said snow flurries were possible for northern Indiana and northern Ohio by April 1-2.
There were reports of some field activity between rains last week, although one Ohio source said growers in his trade area likely would be out of the field until early the following week due to wet conditions
Western Cornbelt: The Western Cornbelt was hit with multiple storms in late March. A round of severe weather rolled through central Nebraska on March 29, followed by 3-4 inches of snowfall in western Nebraska from Winter Storm Troy at midweek.
Thunderstorms were reported in Iowa and Missouri as well, with the worst weather – including large hail and damaging winds – observed in locations south of Interstate 80 on March 30-31. Hail was also reported in the St. Louis area at midweek.
Northern Plains: Back-to-back storms blanketed parts of the Northern Plains with snow in late March. Winter Storm Troy dropped several inches in western South Dakota on March 30, while parts of Minnesota collected 7-10 inches one week earlier.
There were reports of spotty fieldwork in the region last week, but North Dakota sources talked of a rain/snow mix at midweek that limited field activities to the southwestern part of the state. One North Dakota contact said most growers in his trade area are expecting to start somewhere between April 4-10, depending on weather and field conditions
Great Lakes: Great Lakes regional sources reported some fieldwork during the final days of March, but activity was limited due to wet conditions. “With the early loss of snow, there is fertilizer application when the weather is dry and none when it rains,” said one contact. “But some product is moving.”
Recent storms brought heavy snowfall to some areas of the region. A foot of snow fell in parts of Wisconsin from Winter Storm Selene on March 23, while Michigan sources reported up to 14 inches in some locations from the same storm. The final day of March brought thunderstorms to western Michigan, with reports of 60-mph wind gusts and hail in some areas.
Sources said they remain optimistic about spring fertilizer volumes. “We are encouraged that if farmers can afford it, they will be generous with their rates, especially potash,” said one contact last week.
Northeast: The Northeast has been weathering multiple storms since the start of spring. The first, Winter Storm Regis, brought 4-8 inches of snow to the Mid-Atlantic and New England regions on March 21, with nearly a foot reported in some parts of Maine.
The first days of April were expected to bring more snow to the region, and also much colder temperatures. Lows were forecast to fall to the 20s and 30s over the coming weekend, with wind chills dropping to the single digits in parts of the Northeast.
Sources reported only spotty fieldwork in the region last week, with many areas still too wet.
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All information has been obtained by Green Markets from sources believed to be reliable. However, because of the possibility of human or mechanical error by our sources, Green Markets or others, Green Markets does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.
For additional details visit our Terms of Use.