Moscow-OJSC Uralkali has announced that the proposed combination of Uralkali with OJSC Silvinit was approved by shareholders of both companies Feb. 4, 2011. Completion of the proposed merger, which will create one of the world’s leading potash companies, is expected in May, subject to receipt of required governmental and regulatory approvals. Uralkali shareholders representing 98.9 percent of the votes cast at the meeting voted to approve the merger of Uralkali and Silvinit. Silvinit shareholders representing 90.9 percent of the votes cast at the meeting voted for the merger.
Eastern Cornbelt: The anhydrous ammonia market remained at $675-$690/st FOB in the region, with the low quoted in the Illinois market for spot prepay offers and the upper end FOB Huntington, Ind., for prompt ammonia. Illinois contacts also talked of prepay offers at the $680/st FOB level last week.
Western Cornbelt: The Western Cornbelt anhydrous ammonia market was steady at $630-$670/st FOB regional terminals, depending on location and time of delivery.
California:Calamco raised its anhydrous ammonia postings to the $660/st truck-DEL mark in California, while aqua ammonia postings firmed from $165/st to $177/st FOB. Calamco’s AN-20 reference price moved to the $266/st truck-DEL level.
Pacific Northwest: Anhydrous ammonia was pegged at $690-$710/st DEL in the Pacific Northwest region, depending on location. The range was up on the low end, and had also narrowed considerably from last report.
Western Canada: Anhydrous ammonia pricing was steady at $817-$825/mt DEL in Manitoba, $825-$834/mt DEL in Saskatchewan, and $834-$861/mt DEL in Alberta. Dealer postings remained in the $827-$871/mt DEL range in the region, depending on location.
Middle East: Market sources say demand from Europe, Asia, and the United States is pushing the price ever upward. Last week at least three deals were concluded that moved Arab Gulf ammonia into the $450s/mt FOB. Nitrochem took 8,000 mt from Sabic and 15,000 mt from Fertil at $450/mt FOB early in the week. By Thursday, the price moved to $457.50/mt FOB in a deal between Sabic and Transammonia.
Industry sources say the move was expected after the Tampa price jumped to $515/mt CFR.
Sources in Asia say production problems in Algeria, Trinidad, and Yuzhnyy are helping move up the Middle East price.
The one dampening feature is India’s increased take of Iranian ammonia.
The contract price into India remains constant. One source said the reason for the stable price is the steady rate of ammonia purchases from Iran at a price lower than what the Arab producers are now able to secure in the spot market.
With the latest deals, sources now say the ammonia market for the Arab Gulf is at $450-$458/mt FOB, with $500/mt FOB expected soon.
strong>Black Sea: Sources report Mitsui took a cargo from Yuzhnyy for delivery to Yara in Tampa. The unusual sales chain was the result of good timing, said an Asian trader. Mitsui reportedly had a vessel without a cargo just at the time that some tons for the United States could be had in Yuzhnyy. Sources report the sale reflected the new higher Tampa price. One observer noted the deal was a “win-win” for everyone.
Prices remain strong in the upper $460s and low $470s/mt FOB. However, sources say higher prices are on the horizon. Continued diversion of natural gas to the consumer market and away from ammonia producers will keep ammonia stockpiles limited. One trader said that the limited production, coupled with strong demand, almost ensures higher prices in the second quarter.
UREA
U.S. Gulf:Granular barge prices began the week strong, with trades reported early in the week for prompt at $380-$385/st FOB. However, despite a positive grain report earlier in the week, sources said buying interest quickly dried up. As a result, players said trades dropped as low as $375-$379/st FOB. However, one player said he was still holding out for the higher numbers last week.
Despite the heady grain news, sources said that for the most part, the urea supply pipeline is now well stocked and will not be replenished until actual movement to the field occurs. With much of the nation in the deep freeze, that i
CF Industries Holdings Inc.’s board of directors has elected Robert Kuhbach as an independent director of the company. Kuhbach is a retired Dover Corp. CFO and will serve as a Class III director. He is expected to stand for re-election by stockholders at the company’s 2011 annual meeting. His election brings membership of the CF board to ten. Kuhbach holds a bachelor’s degree in economics from Yale University and a J.D. degree from the University of Michigan Law School.
Pakistan’s only DAP producer, Fauji Fertilizer Bin Qasim Ltd. (FFBL), appointed Lt. Gen. Muhammad Zaki (retired) as its new CEO and managing director, effective Jan. 26, replacing Lt. Gen. Anis Ahmed Abbasi (retired).
Wilbur-Ellis Co. has appointed Scott Rawlins to the newly created position of director of regulatory and governmental affairs. He will work mainly with the company’s Agribusiness Division, reporting to Troy Hackett, who leads Wilbur-Ellis’ enterprise risk management function. Rawlins has more than 20 years experience, most recently as the vice president, regulatory and governmental affairs, at Makhteshim Agan of North America. Prior to that, he was with the American Farm Bureau Federation. Rawlins earned a B.S. in Agriculture from the University of Wisconsin, Madison. He joined the company Jan. 7 and is based out of the Walnut Creek, Calif. office.
Several former Plant Health Care Inc. sales, marketing, and business professionals have joined LebanonTurf as part of its acquisition (GM Jan. 17, 2011) of PHC’s U.S. Horticultural and Turf division, according to Dave Heegard, general manager of LebanonTurf.
Sales representatives Allen Ball, Kevin Spiller, and Stephen Camp will reinforce LebanonTurf’s national coverage for bionutritional products. In addition, Cheryl Eberle joins LebanonTurf’s marketing team, and Dr. Michael Kernan, research and development scientist, will add his experience to the company’s technical support group.
Tallahassee-The Florida Legislature is considering a bill that would override fertilizer bans passed by counties and cities. The Legislature has tried to pass a state law governing application of fertilizers, rather than the various ordinances that local governments began adopting since 2007. The local bans were passed in an effort to keep fertilizers out of waterways and reduce pollution and growth of algae that kill fish and promote the growth of red tide. Pinellas County has a summer ban of nitrogen-based fertilizers, while across Tampa Bay in Hillsborough County a ban on applications within 36 hours of a heavy rainstorm or within 10 feet of the water is in effect. A total of 19 ordinances of cities and counties are in effect in the state. The chance of passing the bill appeared to be greater this year because Republicans hold a vast majority of the seats in both houses, and newly elected Gov. Rick Scott, also a Republican, opposes any regulations that could have a negative effect on business. Proponents claim the patchwork of local laws makes it difficult for companies to train employees if their companies operate in more than one jurisdiction. The bill’s sponsors, Sen. Greg Evers (R-Crestview) and Sen. Clay Ingram (R-Pensacola) said the local ordinances could go no farther than a model regulation by state agencies. Opponents of the bill said the local ordinances save the state money by preventing pollution, and that it is easier to prevent than it is to clean it up.
Annapolis, Md.-Similar bills have been introduced in the Maryland, Pennsylvania, and Virginia legislatures that would follow the lead of New Jersey in imposing tight restrictions on turf use of nitrogen and phosphorus fertilizer. None of the proposals would apply to fertilizer used in agriculture, but would instead focus on private residences, businesses, golf courses, cemeteries, public properties, and other such locations. According to the Chesapeake Bay Commission, which is championing the proposed legislation, the sale of phosphorous fertilizers would be allowed only on newly established lawns, where soil tests show phosphorus was needed, or to repair turf. Nitrogen would also be limited, and no de-icing agents containing fertilizer could be sold. In the Maryland bill, which preempts local restrictions, fertilizer application on lawns would be banned from Nov. 15 to March 1, or when the ground is frozen, or to impervious pavement, and would be extended to professional applicators. Labels must contain a warning not to apply near water, storm drains, or drainage ditches, or if heavy rain is expected. Commercial applicators would need to be licensed and trained and maintain records of the amount of nutrients they applied to the land and plants. The Maryland Department of Agriculture and the University of Maryland would be responsible for getting out the word to consumers within one year of enactment of the bill.
Scottsdale, Ariz.-The Fertilizer Institute (TFI) kicked off a first-ever “live auction” event at the 2011 Fertilizer Marketing Business Meeting in Phoenix to raise money for the Nutrients for Life Foundation. Playing the part of auctioneer, TFI President Ford West took the stage on Feb. 9 as conference attendees bid more than $22,000 for a range of donated items, including a king-sized bed set donated by Hyatt; attendance at the March 25 Chicago Bulls/Memphis Grizzlies basketball game in PotashCorp’s skybox at the United Center in Chicago; a five-day retreat at the Wood River Lodge in Ketchum, Idaho, donated by Simplot; a three-day stay at the private Bath Lodge in Bath, N.C., donated by PotashCorp; a guided two-day fishing trip in Polk County, Florida, donated by the Mosaic Co.; and a two-night stay at either the Le Centre Sheraton in Montreal or the Sheraton New York in New York City, donated by Starwood Hotels and Resorts. TFI also reported that approximately $15,000 was raised for its FERT PAC political action committee at the conference’s Casino Night event on Feb. 8.
Calgary-Viterra Inc. on Feb. 10 announced an offering in Canada of C$200 million of senior unsecured notes with a maturity date of Feb. 16, 2021, and a yield of 6.406 percent. The offering is being made pursuant to the company’s short form base shelf prospectus dated Aug. 6, 2010, and a prospectus supplement to be filed on or about Feb. 10, 2011. “Bond market yields are very attractive. We see this as another opportunity to reduce future financing risk and bolster liquidity during this rising commodity price cycle,” said Viterra CFO Rex McLennan. The proceeds will be used to partially repay drawings on its global credit facility.
Basel, Germany-K+S Aktiengesellschaft has announced that its indirect wholly owned subsidiary, K+S Canada Holdings Inc., now owns 90.9 percent of Potash One Inc.’s shares as of Feb. 4, 2010. Since the offer has been accepted by the holders of more than 90 percent of the Potash One shares, K+S Canada intends to exercise its right to acquire the remaining approximately 8,718,914 outstanding Potash One shares pursuant to a compulsory acquisition under the Canada Business Corporations Act. K+S Canada expects to complete the compulsory acquisition within the next 90 days.
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