Northbrook, Ill.-Old World Industries, an industry and market leader as the largest world supplier of auto antifreeze and other automotive products under the PEAK and other brand names, is already up and running in the diesel exhaust fluid (DEF) market. It expects to be a strong competitor with Terra Industries Inc. and Yara North America at a national level, providing DEF to truckers and others required to meet new EPA standards for reducing NOx emissions. According to Old World officials, BlueDEF-branded exhaust fluid is now available at thousands of locations through a network of master distributors in 1 and 2.5 gallon bottles, 55-gallon drums, 275 and 330-gallon totes, and above-ground bulk storage and dispensing systems supplied by Blue1USA. Duluth, Ga.-based Blue1USA, a fully integrated manufacturer and distributor of DEF storage and dispensing systems for the commercial and retail markets, will manufacture in North Little Rock, Ark., and will service these products through Old World’s North American distribution. Old World’s established supply network of 10 BlueDEF terminals and over 450 distribution points across North America will enable truck stops, fleet operators, dealerships, and truck manufacturers to maintain DEF inventory network. BlueDEF Brand Manager Chad Wenzel told Green Markets Old World is not disclosing its DEF suppliers at this point, but said BlueDEF meets the stringent ISO 22241 quality specification and is approved under the American Petroleum Institute’s diesel exhaust fluid certification program, which guarantees the integrity of Old World Industries’ DEF supply chain from the point of production right to the DEF tank. To ensure the widest possible availability, Old World is working closely with major distributors of packaged products, including McLane’s, H.T. Hackney’s, Eby-Brown, and Core-Mark, to ensure that BlueDEF is on the shelves in Pilot, Flying J, Love’s, Sunoco, Speedway, and SuperAmerica convenience stores, as well as Wilco Travel Centers and other major retailers. “Few manufacturers have the opportunity to supply and distribute to so many diverse networks as we do,” said Kal Mahmood, senior vice president of commercial sales. “Our expertise and relationships across the heavy-duty market allows us to provide BlueDEF through an already established network.”
U.S. Gulf/Tampa: The Tampa and NOLA markets remained quiet last week. Tampa buyers will soon lose one big plus they have been enjoying the last few months – extra tons from Trinidad. The AUM UAN plant is expected to go into start-up mode Jan. 8-10. Once it comes up there will be no more extra ammonia from the facility to be marketed by Koch.
In the meantime, there were reports of problems with a CF ammonia plant at Donaldsonville that might be having an impact on downstream UAN and/or urea production. However, CF had not responded to inquiries at press time.
Eastern Cornbelt: Spring prepay ammonia continued to be quoted in the $425-$440/st FOB range out of regional terminals. One source quoted prepay ammonia FOB Huntington, Ind., at the $430/st mark.
Western Cornbelt: Spring prepay ammonia was pegged at $395-$420/st FOB in the region, depending on location, with the low reported in Nebraska. One supplier was referencing forward contract ammonia for February through May at $410-$430/st FOB Iowa terminals, and $435/st FOB in Missouri.
Northern Plains: The only quotes for anhydrous ammonia were for spring prepay tons, which sources quoted at $425-$440/st FOB regional terminals, depending on location. North Dakota sources quoted delivered prepay ammonia at $455-$485/st, depending on supplier. One supplier was offering forward contract ammonia for February through May at $435/st FOB Minnesota terminals, and $440-$460/st FOB North Dakota terminals.
Great Lakes: Michigan sources quoted the anhydrous ammonia market at $350/st FOB Coutright, Ont., for prompt tons. Spring prepay ammonia was reported in the $430-$435/st FOB range, with the lower number out of Huntington.
Middle East: Sources report availability from the area remains tight. Even with Indian demand easing off, industry observers say the overall need for ammonia is strong enough that producers see no reason to lower their prices.
PIC in Kuwait announced late last week it was shutting down its ammonia and urea production for one week. Industry watchers say the shutdown is a routine maintenance check.
One trader noted that even without the PIC ammonia, the availability of ammonia from the area would not be drastically affected. Sources report that with Sabic back up to full production, this was the best time for another producer to take down a plant for a turnaround.
Many of the tons being shipped out of the area are reportedly tied to covering swap deals that dominated the last quarter of 2009.
Right now, say sources, demand from Asia is pushing up against the current supplies.
The shutdown in Kuwait is balanced out by full production elsewhere. Prices remain stable.
Black Sea: Sources report that demand from Europe and the U.S., while steady, has not been enough to move up prices. Most Ukrainian producers remain shut down because the price of ammonia from Yuzhnyy is not high enough to cover the cost of the Russian natural gas to produce the product. Plants that are running keep asking for higher prices ?Çô and just as regularly are being turned down.
Asia: Demand in the area stepped up with the new year. Sources report that Namhae is now back to 100 percent production. Therefore, said one trader, its ammonia needs have stepped up accordingly.
Overall, Asia remains the one shining spot for the ammonia market. Demand from major buyers in Taiwan and South Korea continues. Sources report Philippine buyers are also anxious to ensure regular deliveries.
Western Europe: Sources report the rough weather in Europe has played havoc with ammonia purchases and deliveries. Some plants that normally demand steady supplies of ammonia were forced to shut down or reduce production because the weather kept workers away or because the extreme cold forced closures.
On the other hand, plants that could operate faced shortages of material because road and rail transportation was hampered by the weather.
Overall, said one source, the price remained in the same range.
UREA
U.S. Gulf: Recent granular trades were reported in the $320-$325/st FOB range. Sources say they worked their way up throughout the week, and sellers were hoping to top the $325/st FOB mark in the next trade.
Eastern Cornbelt: Granular urea was steady at $355-$360/st FOB to the dealer.
Western Cornbelt: The granular urea market remained at $350-$360/st FOB in the region. Koch’s urea posting FOB Enid, Okla., moved on Dec. 31 to $345/st.
Northern Plains: Granular urea remained at $360-$380/st FOB in the region, with the low at Minneapolis and the higher numbers in the Dakotas. Spring prepay was quoted at the $370/st level FOB Minneapolis, and up to $385-$390/st FOB in North Dakota. One supplier was offering forward contract urea for February at $375/st FOB Pine Bend, Minn., and $405/st DEL in North Dakota and northern Minnesota, with a $10/st increase for March and April shipments.
Great Lakes: Granular urea was pegged at $355-$370/st FOB for prompt tons, with the low in Wisconsin and the upper end in Michigan. Prepay urea was quoted in the $360-$380/st FOB range in the region. Agrium’s Dec. 10 granular urea postings included $385/st rail-DEL in Wisconsin.
Northeast: Granular urea was steady at $360-$365/st FOB in the region. The dealer market FOB Savannah, Ga., was pegged at $355-$360/st.
Middle East: Producers report steady and healthy movement in the area despite a quiet opening of the year.
Last year the industry used January to catch its breath after a dizzying drop in prices from a high of more than $800/mt FOB in the third quarter 2008 to a January 2009 average price of $242.50/mt FOB.
Last year showed a steady increase in prices, to close the year at $267.50/mt FOB for prills. Granular urea opened the year at parity with prills and closed last month with an average price of $305/mt FOB.
Producers, predictably, clamored for higher prices, but buyers dug in their heels at every opportunity, blunting another rocket ship ride for prices.
Traders were more relaxed about the market last week compared to the previous year at the same time. One Asian trader noted that people are now looking at opportunities for some serious deals instead of trying to figure out how to blend high-priced material purchased earlier, as they did last year.
The routine closure of PIC for a week is not expected to shake the market either way. Once source said the amount of granular tons available from the area are sufficient to cover the contracts that are being honored this month.
If the plant stays down more than a week, one trader said, the producers might be able to argue tight supplies. Until then, he continued, the market remains balanced.
Sources do suggest that the lower end of the granular market has disappeared, bringing up the low end from $300/mt FOB to $310/mt FOB.
India: Rumors are once again flying around that an Indian buyer will return to the market soon.
Some traders dismiss the rumors. They point to the large yearend purchase by IPL from Agora to bolster their argument.
India has enough tons in the pipeline – assuming Agora delivers as promised – to cover the country’s needs into the next application season, say sources.
Others argue that with the stockpiles in hand, Indian buyers might do better to wait until the new fiscal year begins April 1. Buyers will have a better sense of the subsidy levels that will be available after that date.
Waiting until April to issue a tender would also put pressure on producers to lower their prices, said one trader.
Media reports from India say the government formed a special group of ministers to overhaul the subsidy system.
The government first announced the changes in November. At that time, the government said subsidies would be issued based on the content of the fertilizer instead of the actual price of commodity. Sources say this plan would allow the government to help move some urea users to other fertilizers that are domestically produced. The shift could save money for an already cash-strapped government.
The group of ministers will decide when to make the shift in subsidy dispersal.
Black Sea: Sources report the producers claim they are comfortable into February. The reason for their good shape is the reported 300,000 mt IPL/India purchase from Agora. Sources say the material will most likely come from Yuzhnyy.
The Agora deal is on top of the awards Fedcominvest won in several of the TCP/Pakistan tenders.
Sources note, however, that once these deals are fully concluded, there is nothing on the horizon to make the producers happy.
Producers are using rumors of a new India tender in the next couple of weeks to back up their claims that higher prices are coming.
The Black Sea price rode the same roller coaster as the Middle East from mid-2008 until the end of last year.
Prices hit a high of $815/mt FOB in the third quarter, only to plummet to $212.50/mt FOB by the end of that year. The price edged up slowly – with a few dips along the way – to close in December 2009 at an average price of $257.50/mt FOB.
Last week’s price did not shift from the closing 2009 price.
China: Prices remain at $320/st FOB for granular and about $310/mt FOB for prills. Sources say producers do not seem anxious to cut their prices.
Asian traders note that unless the price comes down, most Chinese urea would not be competitive in some of the Pacific markets looking for material.
Industry watchers seem to agree that Beijing is allowing individual customs officials some discretion in handling the export of urea.
According to area traders, some port authorities will allow urea to be shipped at the current rate of 7 percent even after the rate goes up to 100 percent Feb. 1. Sources say the shipment must be of urea already in bonded warehouses, and a vessel has to be nominated.
This leeway could allow some buyers to push back shipment into the first week of February with no penalty.
After Feb. 7 and until Feb. 21, few expect to see much activity in China. The Lunar New Year begins Feb. 14. Most workers begin leaving for their home provinces leading up to the 14th, and then usually stay about a week.
Bangladesh: Sources report BCIC scrapped its two Christmas week tenders. A new tender closes Jan. 11. The tender calls for offers of 50,000 mt each of prilled and granular urea.
Industry watchers say BCIC will be calling fewer tenders as it continues its efforts to nail down favorable long-term deals with producers.
The most recent was the deal it struck at year’s end with Qafco/Qatar for 300,000 mt/year.
Pakistan: The government has increased natural gas prices for first half 2010. However, feedstock gas prices for urea plants have remained unchanged, though they have surged 18 percent for gas for fuel use.
In the meantime, sources predict that 2010 will be a banner year for new Pakistani urea production with both the Fatima and Engro urea plants coming online, resulting in an incremental capacity of 1.8 million mt.
In other news, after an approximate one-month delay, MV JPO Delphinus has started offloading urea at the Gwadar Port. The vessel, which ran aground at the port Dec. 8, was carrying urea from Ukraine for TCP. Sources said the delay did not hurt the supply chain as there was enough stock available for the ongoing Rabi season (Oct-March 2010).
NITROGEN SOLUTIONS
U.S. Gulf: UAN barges were quiet last week. While some still suggest price ideas as high as $190/st FOB, others say the most recent trades reflect prices in the $179-$185/st FOB range ($5.59-$5.78/unit).
Sources report that the new AUM plant in Trinidad is going into start-up mode over the weekend of Jan. 8-10. If successful, the first cargo from the plant – expected to go to Europe – might be available by the end of the month. Helm will market the product.
In the meantime, there has been no word on the status of LSB Industries Inc.’s Pryor, Okla., UAN plant, which was last expected to come up in December. Koch Nitrogen is to market that product.
Eastern Cornbelt: The UAN-32 market remained at $230-$250/st ($7.19-$7.81/unit) FOB regional terminals, depending on location and time of delivery. Several sources pegged the common dealer market in the $7.25-$7.50/unit FOB range for spot or prepay tons last week. Another source said the markets are frozen and that there is really no spot market right now, only prepay.
Western Cornbelt: UAN-32 was generally quoted in the $225-$245/st ($7.03-$7.66/unit) FOB range, depending on location, supplier, and time of delivery. One Iowa source put the dealer market firmly at the $7.50/unit FOB level for prompt tons last week. Koch’s UAN postings, effective Jan. 8, included Beatrice, Neb., at $230/st ($7.19/unit) FOB for UAN-32 and $201.25/st ($7.19/unit) for UAN-28, and Sergeant Bluff, Iowa, at $240/st ($7.50/unit) FOB for UAN-32 and $210/st ($7.50/unit) for UAN-28.
Northern Plains: Sources quoted the UAN market at $7.25-$7.86/unit FOB regional terminals, depending on location and time of delivery. A North Dakota source pegged the UAN-28 market at $225/st ($8.03/unit) DEL for prompt tons and $245/st ($8.75/unit) DEL for spring prepay.
Great Lakes: The UAN market was quoted at $7.19-$7.86/unit FOB regional terminals, depending on location and time of delivery, with the low reported in Wisconsin. Out of Michigan terminals, UAN-28 was pegged at $210-$220/st ($7.50-$7.86/unit) FOB to the dealer.
Northeast: UAN-30 was quoted at $195-$200/st ($6.50-$6.67/unit) for prompt tons FOB Baltimore, Md. One source pegged prepay UAN at the $196.50/st ($6.55/unit) FOB level in Delaware on a spot basis, while another put the prepay market in Baltimore at the $205/st ($6.83/unit) FOB level. Out of terminals in upstate New York, UAN-32 was quoted at $240/st ($7.50/unit) FOB for prompt tons, with no spring prepay offers on the table in early January.
AMMONIUM NITRATE
U.S.Gulf: Barges were called $215-$220/st FOB. Terra has reportedly moved its Yazoo City posting to $245/st FOB.
AMMONIUM SULFATE
Eastern Cornbelt: Ammonium sulfate was quoted at $185-$215/st FOB, with the low for standard and the upper end for granular product.
Honeywell alerted Midwest customers on Jan. 7 that it was no longer accepting mid-grade ammonium sulfate rail orders until further notice.
Western Cornbelt: Ammonium sulfate remained in a broad range at $185-$215/st FOB, depending on grade and location, with the upper end reported for granular product in the Iowa market.
Northern Plains: Granular ammonium sulfate pricing had reportedly firmed to $235-$245/st DEL in North Dakota, with the low for prompt tons and the upper end for spring prepay. Effective Jan. 13, Agrium’s list price for granular ammonium sulfate will firm to $245/st DEL in Minnesota and North Dakota.
Great Lakes: The ammonium sulfate market was quoted at $185-$210/st FOB, with the upper end for granular product and the low quoted by Wisconsin sources for standard grade sulfate. Agrium’s granular ammonium sulfate posting will firm on Jan. 13 to $245/st DEL in Wisconsin.
Northeast: Granular ammonium sulfate pricing was up from last report at $185-$190/st FOB and $210-$215/st DEL, depending on location.
Western U.S: Agrium’s granular ammonium sulfate postings will firm on Jan. 13 to $245/st DEL in Washington, Oregon, Idaho, Montana, Wyoming, Utah, and Nevada. Warehouse postings will move on that date to $240/st FOB in Washington, Oregon, Idaho, Utah, and Nevada.
PHOSPHATES
Central Florida: Strawberry, citrus, and vegetable crops were being threatened by a prolonged freeze throughout most of Florida last week, and the situation was not expected to improve until sometime this week. Farmers were spraying water on crops to form an ice shield to protect the plants from the cold and prevent damage. On the bright side, citrus, strawberries, and blueberries will become sweeter after exposure to lower temperatures. All of the eastern states were being affected by the extreme cold snap, as well as portions of the West and most of the Midwest.
Despite the cold, demand for phosphate from Central Florida was far stronger last week, and that trend was expected to continue into the near future. Supplies were very tight, because inventories were depleted earlier by a heavy export schedule and curtailments in production. Mosaic completed scheduled turnarounds in December, and PotashCorp’s Aurora facility in North Carolina was undergoing a turnaround that was expected to last until Jan. 17-18. One source said phosphate was so hard to get “you have to beg someone” in order to buy.
Early in the reporting period, sales were made as low as $365/st FOB. The sale price then increased to $370/st FOB. Late last week both Mosaic and CF had posted a new price of $380/st FOB, although no deals were found at that level.
Based on actual sales last week, the Central Florida price range for DAP was $365-$370/st FOB, but buyers should expect to pay no less than $380/st FOB this week – and perhaps more, said sources. PCS Sales was charging a “market price.” Agrifos was selling only truckloads last week at a price of $410/st FOB for DAP and $420/st FOB for MAP.
U.S. Gulf: After two years of lackluster performance and a less than expected fall season, phosphate sales on the Gulf’s river system took full flight during the past month. Sales were up, inventories were down, and prices moved with the market – up.
Before Christmas, prices had risen to around $345/st FOB, but last week the cost of a NOLA DAP barge was bringing $395/st FOB at the top. That did not escape the notice of producers, who quickly hiked the price to $400/st FOB. How that will sit with farmers was difficult to tell last week, because the weather was so bad, little was going on the ground. Fear and resentment over $1,200/st FOB prices two years ago were giving way to fear of being left behind for most dealers, who were scrambling to restock their bins before the price rose even higher.
Unlike during the big run-up two years ago, the increased cost has been more logical – production and inventories have been much lower, and demand was on the increase. Export sales, which had been carrying the industry, have slipped in importance in comparison to the domestic markets.
Despite the snow and unreasonably cold temperatures, warehouse sales were strong and steady last week in most areas. Prices at warehouses were moving upward to keep pace with the higher cost of phosphate barges. DAP was running as high as $430/st FOB, and MAP, which was difficult to find at any price, was around $450/st FOB. Those higher prices made the price of potash, which dropped last week, finally seem reasonable – and it, too, was moving quickly.
Although fertilizer prices were higher last week, farmers were still likely to buy because crop prices were very good. Corn for December 2010 was at $4.45/bushel, and soybeans for that period were selling for $10.10/bushel.
The NOLA DAP barge price last week increased from $380/st FOB in the previous range to $385-$395/st FOB, and prices for MAP were running $10-$15/st FOB higher. Still, sellers were increasingly moving toward the $15/st FOB differential, as MAP was extremely scarce.
Eastern Cornbelt: DAP out of regional warehouses was generally pegged at $425-$440/st FOB, with the low out of spot river locations and the upper numbers reflecting some inland values as the week progressed. MAP was $10-$15/st higher than DAP, depending on location and supplier, and in tight supply. One source reported DAP pricing in his location as high as $450/st FOB late in the week, with MAP at $460/st FOB.
CF’s DAP postings for the Jan. 7-8 order and shipping period included $435/st FOB Peoria, Ill., and $440/st FOB Cincinnati, Ohio. Postings FOB Central Florida for rail or truck tons for that period included $380/st for DAP and $395/st for MAP.
Dealers continued to talk of meeting some resistance at the retail level as growers are confronted with the higher phosphate prices. “There is some resistance, and that happens any time there’s a fast run-up in price,” said one source. While noting that this is a “predictable reaction” from growers, he said dealers should remind growers “what a $4 corn price can afford to pay.” The buyer strike that happened last year is still fresh on everyone’s mind, he cautioned. “One of the challenges for the industry is that this volatility of the last several years has weaned us off of selling,” he said. “The dealer needs to sit that grower down and help him understand why he should buy. It just makes sense. Today, that equation is in the black. Now is the time to put on your selling shoes and do your job.”
The 10-34-0 market was quoted at $335-$365/st FOB in the region.
Western Cornbelt: The dealer market for DAP was pegged at $425-$440/st FOB regional warehouses, with the higher numbers reported later in the week. MAP was $10-$15/st higher than DAP. CF’s DAP postings for the Jan. 7-8 order and shipping period included $430/st FOB St. Louis and Inola, Okla., with MAP moving to $445/st FOB Inola.
10-34-0 was quoted at $335-$355/st FOB in the region.
Northern Plains: DAP pricing had firmed to $430-$440/st FOB, with the higher numbers reported as the week advanced. CF’s list prices FOB Pine Bend for the Jan. 7-8 order and shipping period included DAP at $440/st and MAP at $455/st. A North Dakota source quoted rail-delivered MAP at the $495/st level to his location at midweek, with tight inventories.
One supplier was referencing forward contract DAP at $450/st FOB in Minnesota for February through May, with MAP at the $465/st FOB mark.
10-34-0 was quoted at $325-$345/st FOB in the region, with the upper end of that range also reported for delivered tons in North Dakota. Effective Jan. 1, Agrium’s list price for super phosphoric acid (SPA) and merchant grade acid (MGA) moved to $690/st rail-DEL in Minnesota and the Dakotas.
Great Lakes: Phosphates continued to firm and inventories were described as snug, particularly for MAP. DAP was quoted at $430-$440/st regional warehouses, with MAP at a $10-$15/st premium, depending on location. One Wisconsin source pegged rail-delivered DAP at the $440/st level to his location, based on a $370/st FOB Central Florida price.
10-34-0 was tagged at $340-$365/st FOB, with the low in Wisconsin and the upper end in Michigan. One Wisconsin source reported prepay 10-34-0 offered at the $355/st FOB level.
Northeast: Phosphate pricing was also up significantly from last report. The dealer market for MAP was quoted at $440-$460/st FOB in the region, with the low in western Pennsylvania. DAP was $10/st less than MAP, where available. 10-34-0 pricing was tagged at $345/st FOB in the region.
Western U.S.: Agrium’s MAP postings firmed again on Jan. 7, to $450/st DEL in Montana and Wyoming; $455/st DEL in southern Idaho, Utah, Nevada, and Oregon’s Malheur County; $460/st DEL and $455/st FOB the warehouse in Washington, northern Idaho, and Oregon excluding Malheur County; and $465/st FOB or rail-DEL in California and Arizona. Those levels reflect a $20/st increase from Agrium’s Dec. 23 postings, a $55/st increase from Dec. 9 postings, and a $70/st increase from Nov. 30 list prices.
U.S. Export: Now a bargain in comparison to domestic U.S. prices, the export price of DAP and MAP rose to $405/mt FOB last week as world demand continued to rise.
China, which has had some of its coldest weather on record, reduced the supply of fuel to phosphate plants to provide more heating oil, and increased its price for DAP to between $450/mt FOB and $480/mt FOB. An export duty of 110 percent goes into effect in February, and the effect was to make the product less competitive on the world market.
Last week PhosChem made a sale of 6,000 mt of DAP into Mexico at $390/mt FOB. The next deal was the sale of 30,000 mt MAP into New Zealand and Australia at $400/mt FOB. (In the export market, prices for DAP and MAP are approximately equal.) Late last week, it made another DAP sale of 10,000 to 15,000 mt into Mexico at $405/mt FOB. PhosChem was seeking $415/mt FOB for its next transaction.
The Greek ship Navios Apollon, which was seized by Somali pirates on Dec. 28, was carrying phosphate owned by PhosChem and destined for India. However, the material was for PhosChem’s own terminals and not for a particular customer, and a spokesman said there were sufficient supplies on hand. No information on the amount of phosphate, the ransom demand, the crew, or the value of the cargo had been released.
Based on PhosChem’s most recent sales, the export DAP price range last week moved from a flat $380/mt in the previous range to $390-$405/mt FOB, and PhosChem increased its asking price for the next deal to $415/mt FOB.
POTASH
Eastern Cornbelt: The potash market was pegged at $390-$397/st FOB and $400/st DEL in the region, and sources said the new postings from producers will generate some business. Effective Jan. 5, for shipments completed through Feb. 28, Agrium’s 60 percent red premium potash postings moved to $390/st FOB warehouses and $400/st rail-DEL in Illinois, Indiana, and Ohio, with a $30/st increase slated for March 1. PCS Sales’ granular potash postings out of warehouse locations for the Jan. 4 to Feb. 28 period include $390/st FOB and $400/st rail-DEL in the region, with a $30/st increase scheduled for March 1.
Western Cornbelt: Effective Jan. 5, for shipments completed through Feb. 28, Agrium’s 60 percent red premium potash postings moved to $390/st FOB Dubuque, Iowa, New Madrid, Mo., and Homestead, Neb., with rail-delivered postings moving to $400/st in Iowa, Missouri, Nebraska, Kansas, and Oklahoma. A $30/st increase is slated for March 1. PCS Sales on Jan. 4 dropped its granular potash postings to $390/st FOB St. Louis, Mo., Ft. Dodge, and Waterloo, Iowa, with rail-delivered postings moving to $400/st in Iowa.
Northern Plains: Effective Jan. 5, for shipments completed through Feb. 28, Agrium’s 60 percent red premium potash postings moved to $390/st FOB Shakopee, Minn., Grand Forks, N.D., and Colfax, N.D., with rail-delivered postings moving to $400/st in Minnesota and the Dakotas. A $30/st increase is slated for March 1. Agrium’s mine postings FOB Vade, Sask., moved on Jan. 1 to $337/st FOB for standard and $342/st FOB for premium potash, also with a $30/st increase scheduled for March 1.
PCS Sales’ potash postings FOB Saskatchewan mines dropped on Jan. 4 to $345/st for standard, $350/st for granular, and $357/st for soluble and white granular. The company’s rail-delivered postings fell to $400/st in Minnesota. A $30/st increase is scheduled for March 1.
Great Lakes: Potash pricing out of regional warehouses was down significantly following new producer postings in early January. Michigan sources pegged the warehouse market at $390/st FOB for red granular and $397/st FOB for white granular potash. Wisconsin dealers also quoted the $390/st FOB level for red granular potash, with rail-delivered tons at the $400/st mark. Most agreed that these new numbers will spark some business. “It’s going to definitely stir some more activity,” said one.
Effective Jan. 5, for shipments completed through Feb. 28, Agrium’s 60 percent red premium potash postings moved to $390/st FOB Saginaw, Mich., and $400/st rail-DEL in Michigan and Wisconsin. A $30/st increase is slated for March 1.
PCS Sales’ granular potash postings dropped on Jan. 4 to $390/st FOB Green Bay, Wisc., with rail-delivered postings falling to $400/st in Wisconsin and Michigan. A $30/st increase is scheduled for March 1.
Northeast: Effective Jan. 5, for shipments completed through Feb. 28, Agrium’s rail-delivered 60 percent red premium potash postings moved to $410/st in Massachusetts, Connecticut, Rhode Island, Maine, Vermont, New Hampshire, Delaware, Maryland, New Jersey, New York, Pennsylvania, West Virginia, Virginia, the Carolinas, Alabama, Georgia, Florida, Kentucky, and Tennessee. Agrium’s red postings out of warehouses moved on Jan. 5 to $400/st FOB Wilmington, N.C., and Georgia locations at Americus, Bainbridge, Savannah, and Tifton. A $30/st increase is slated for March 1.
SULFUR
Tampa: Sulfur suppliers and phosphate producers were in serious negotiations last week, as prices on the world market were escalating and supplies here and elsewhere were running thin. Speculation was the price could climb from the current $30/lt for molten sulfur delivered to Tampa to between $70-$80/lt.
Mosaic Co. CFO Larry Stranghoener told analysts Jan. 6 that the sulfur market is quite tight right now both in the international and North American markets, and it does expect to see some increases. However, the company would not comment on specifics.
Under the circumstances, some sources say phosphate producers should probably settle sooner rather than later with their suppliers, because the longer they wait, the more likely it will be for the sulfur industry to stiffen their resolve and push for even more. The one thing phosphate could seek was better guarantees for their supplies in exchange for higher prices. Supply will be a problem this quarter, say sources.
Despite predictions that there will be an overabundance of sulfur by the end of this year, that will not be the case during the first quarter – and maybe not the second quarter of this year, either. The economy has suppressed driving, so less gasoline was being refined and less sulfur was being removed. In addition, many refineries were either in or getting ready to perform turnarounds at their plants. If that were not enough, sulfur producers know they can make more in the export market than selling to their old friends in the phosphate industry. Even with a reduction in production of sulfur, more will be sent to the prillers on the Gulf Coast and into the export market this quarter. Sales into Brazil were said to be running around $125/mt CFR, which provides a netback of about $80/mt. Meanwhile, ocean freight rates were coming down, which means more profit for sellers.
Vancouver: Supplies into Vancouver have been down, and that has helped push prices up. Recently signed contracts were in the range of $80/mt FOB to $90/mt FOB, but some sulfur producers were seeking as much as $120/mt FOB, although that price was not achieved as of last week. Spot prices were about the same as contract prices last week, but that could also change as supplies diminish and demand increases.
The recent fire at Suncore will shut down activity for longer than originally anticipated. Instead of two-to-four weeks, it will be sometime in mid-February before work resumes at the oil fields project.
Temperatures in Canada have slipped into the minus-40F range, and that has made loading product difficult for safety reasons, which, of course, has added to the supply problem.
MARKET NOTES
Pakistan: Engro Chemical Pakistan has converted into a holding company structure, effective from Jan 1, 2010, and has changed its name to Engro Corp. Ltd. The holding company would comprise six specific lines of business, including Engro Fertilizer Ltd., Engro Foods Ltd., Engro Powergen Ltd., Engro Polymer & Chemicals Ltd., Engro Vopak Terminal Ltd., and Avanceon Ltd.
Michael Buffington, 68, Grove, Okla., died Dec. 31, 2009, from complications from cancer. He retired as Tessenderlo Kerley Inc.’s vice president-export marketing in 2007, having joined the company in 1983 as a marketing representative.
After serving four years in the U.S. Air Force and receiving a B.S. in Agronomy from Kansas State University, he spent his entire career in the agriculture industry, working as a salesman, agronomist, and executive.
Buffington is survived by his wife Susan, their five children, and nine grandchildren. Memorials may be made to either the Good Shepherd Hospice of Grove, Okla., or the American Cancer Society. Donations for these may be sent to Konantz-Cheney Funeral Home, 15 W. Wall St., P.O. Box 309, Fort Scott, Kansas 66701.
Bunge Ltd. on Jan. 7 announced the appointment of Pedro Parente to the newly created position of president and CEO, Bunge Brazil, effective Jan. 11, 2010. Parente will lead all of Bunge’s businesses in Brazil, and will report to Alberto Weisser, Bunge chairman and CEO.
Until December 2009, Parente served as chief operating officer of Grupo RBS (RBS), a leading Brazilian multimedia company. He was responsible for managing all operations of the company, which owns 18 TV stations, eight newspapers, and 25 radio stations. Prior to joining RBS, he held a variety of high-level posts in the public sector. Parente served as chief of staff, minister of planning, and deputy minister of finance during the administration of Brazilian President Fernando Henrique Cardoso. He also served as a consultant to the International Monetary Fund and has worked at the Brazilian Central Bank and Banco do Brasil. He is a former chairman of the board of Petrobras and Banco do Brasil. Parente holds a degree in electrical engineering from the University of Brasília, and is a fellow at the George Washington University Center of Latin American Studies.
Mario Barbosa will continue to manage Bunge’s fertilizer operations in Brazil, and Sergio Waldrich will continue to manage its agribusiness, food products, and sugar and bioenergy operations. Both will report to Parente.
“We look forward to integrating further Bunge’s Brazilian businesses, so they can produce the best services for our domestic and international customers with the greatest efficiency,” said Weisser. “Market conditions demand this. In addition to their management responsibilities, Mario and Sergio will work closely with Pedro to create the optimal linkages among Bunge Fertilizantes, Bunge Alimentos and our growing sugar and bioenergy business.”
Research Triangle Park, N.C.-BASF reports that Headline AMP?äó fungicide has received full registration from the U.S. Environmental Protection Agency. Headline AMP is a combination of the same active ingredient in Headline® fungicide with the addition of a unique, best-in-class triazole. The result, according to BASF, is a broad-spectrum fungicide that provides maximum protection from major foliar diseases such as anthracnose, grey leaf spot, Northern corn leaf blight, Southern corn rust, and eyespot. “Yield-driven corn growers constantly strive to prevent disease, improve plant health and increase yields,” said Nick Fassler, technical marketing manager at BASF. “Headline AMP gives growers the ability to stop disease in its tracks and help achieve the yield performance that comes from applying a fungicide containing an active ingredient with proven plant health.” In replicated trials, BASF said Headline AMP provided consistent yield advantages over competitive products, achieving upwards of 8 bushels per acre more than other fungicides tested. Headline AMP joins BASF’s portfolio of foliar fungicides, including Headline®, TwinLineTM, CarambaTM, and Pristine®. BASF also has a growing portfolio of fungicide seed solutions, including Charter® and Stamina®. BASF recently announced a supply agreement with Monsanto for a new fungicide seed treatment for cotton in the U.S. The new product contains F500®, the same active ingredient found in Headline®, and will be part of Monsanto’s AcceleronTM Seed Treatment System for higher yield potential and protection against diseases caused by Rhizoctonia solani.
Moscow-On Dec. 10, AS BCT launched its ammonia transshipment complex in the Estonian port of Sillamäe. The first vessel was serviced and loaded with 11,640 tons of ammonia. A company in the Acron Group, AS BCT is the second specialized ammonia storage and transshipment terminal on the Baltic Sea. The principal advantages of the terminal facility, according to the company, are its strategic proximity to Russian ammonia producers, advanced high-tech equipment, and year-round servicing of vessels with a capacity of up to 40,000 mt. The Acron Group began construction of AS BCT in 2006 as part of its logistics improvement plan. In addition to handling shipments of the group’s products, the facility will contract to transship ammonia and liquid fertilizers for CIS and EU producers. AS BCT, which is equipped with two 30,000 mt ammonia tanks and three 20,000 mt UAN tanks, obtained permits in September 2009 to operate an ammonia tank farm and ammonia transshipment complex with a design capacity of 1 million mt per year. The Acron Group opened a 1 million mt/year capacity UAN transshipment complex at Sillamäe in March 2008.
Warren, N.J.-The head of the New Jersey Green Industries Council has endorsed a bill in the state legislature that would establish a model ordinance for towns to regulate residential and commercial fertilizer applications. “Assembly Bill 4193, sponsored by Assemblyman John Burzichelli, is a science-based bill that creates a consistent means that would replace what has been an often unscientific patchwork of municipal and county ordinances enacted over the past several years,” according to Nancy Sadlon, the council’s executive director. “In my position I have a keen professional interest in laws that impact turf management. As a New Jersey resident and homeowner, I have an equally passionate interest in the quality of New Jersey’s waterways. Enacting statewide legislative standards, which contribute to the common good of New Jersey’s 566 municipalities, makes uncommonly good sense for our citizens and our environment.” A4193 calls for the New Jersey Department of Environmental Protection to consult with research scientists at Rutgers University Agricultural Experiment Station to identify and encourage best management practices. Burzichelli’s bill would prohibit applying phosphorus to turf grass unless a soil test shows it’s needed, set up no-fertilizer buffers around waterways, require fertilizer applicators to be certified, and ban fertilizing between Dec. 15 and Feb. 20, or anytime when the ground is frozen. Farming operations are not covered by the measure.
Napa, Calif.-A Napa Valley waste management company says a U.S. market is starting to develop for a decomposer that turns wet food wastes into a nutrient-rich soil amendment in less than a day. Kathi Olson, marketing manager for FRG Waste Resources, told Green Markets that FRG has been handling the decomposer since June 2008 and has a number of customers at restaurants, cooking schools, grocery stores, and hospitals. Olson said the equipment was developed in South Korea, where it’s been in use for 10 to 15 years. It sells for between $17,000 and $150,000, depending on the company’s waste stream. “Now the market is starting to burst open here,” she declared. It takes all kinds of food wastes and heats them up to 180 degrees in a closed baffle, which breaks down the material in 10 to 20 hours. A typical application reduces the volume by about 70 percent, leaving a dry, nutrient-rich soil additive that can be used just like fertilizer and tilled into the soil. A restaurant in St. Helena operates its decomposer twice a day, filling it with about 100 pounds of almost everything, from egg shells, macaroni and cheese, coffee grounds, and mashed potatoes to vegetables and bread, and turns it into 15 pounds of sterilized soil additive. The processor, enclosed in a cabinet resembling a copy machine, is easy to operate without emitting any offensive odors. “All that is required is to fill the unit to the specified fill height, close all doors, power it on, and then press the start button.” Olson said that before becoming a manufacturer rep FRB obtained its own decomposer, installed it with a client, and field-tested for six months. Each user gets a lab analysis of the output for nutrient content, which generally runs high in nitrogen.
Salem, Ore.-State environmental officials are indicating that more fertilizer restrictions may be in store for agriculture in Oregon’s Lower Umatilla Basin. “It’s looking like, overall, things are still going downhill,” reported Mitch Wolgamott, the Oregon Department of Environmental Quality’s (DEQ) eastern region administrator. Efforts to reduce nitrogen leaching have been voluntary thus far, with the largest source on the ground’s surface unquestionably being irrigated agriculture, Wolgamott reported, adding that new rules may concern how and when farmers apply nitrogen to their fields. He said farmers were included in setting up the voluntary action plans, but there is no clear data on how much fertilizer or how many practices have been initiated and what they have accomplished. “That creates a big black hole for the largest source,” he stressed, “so what I want to do is get some reporting so we have better data from the source. We are coming up on an evaluation point, and if the voluntary measures are found not to be effective we need to consider something else. We do know that some good things are happening. We know that some progress is being made, but we’re not seeing that reflected in ground quality yet.” He indicated possible approaches could be improved targeting of an education and outreach program, or a permit-style regulation with irrigated agriculture. But he said the latter wouldn’t be the preferred, because “we don’t need any more permits to deal with.” The Oregon DEQ declared concerns about the Lower Umatilla Basin ground water management area in 1990 because nitrate-nitrogen concentrations in many area groundwater samples exceeded the federal safe drinking water standard. A four-year interagency hydrogeologic investigation to determine the extent of contamination and identify potential sources of contamination was conducted. The DEQ and local area residents and governments formed a committee to develop the action plan to address the contamination concerns in the basin.
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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.
