Marysville, Ohio-Net earnings at ScottsMiracle-Gro were off 12 percent in the second quarter ending March 31, 2007, to $83.4 million ($1.23 per diluted share) on sales of $993.3 million, compared to the year-ago $94.8 million ($1.36 per share) on sales of $907.5 million. The quarter included $17.9 million in interest expense, up 43 percent, as well as $18.3 million in one-time refinancing costs. Scotts reported a strong lawn and garden season in nearly all parts of its business, and it remains confident of another year of record performance. The company also noted a significant increase in its international business in the first half, with those sales up 15 percent YTD. Six-month net income was $24.0 ($.35 per share) on sales of $1.26 billion, versus the year-ago $42.1 million ($.60 per share) and $1.16 billion, respectively.
U.S. Gulf/Tampa: Nothing new was reported last week to test the market. However, sources continue to note that lower prices in the Black Sea should put more pressure on Tampa for the next round of talks.
Eastern Cornbelt: Ammonia movement continued in the region last week, although demand had tapered off in many areas. The market continued to slide slightly, with dealer pricing reported at $445-$460/st FOB regional terminals. The low end was reported in Illinois for spot sales, with the upper end reflecting reference pricing at some Indiana terminals.
Western Cornbelt: Ammonia pricing continued to be quoted at $420-$430/st FOB on the low end in Nebraska, with Iowa and Missouri sources tagging the dealer market at $435-$445/st FOB last week. One supplier was offering forward contract ammonia for June at $430-$455/st FOB, with the low at Aurora and Fremont, Neb., and the high at Palmyra, Mo.
Northern Plains: Preplant ammonia movement continued at a fairly brisk pace in the region. Ammonia pricing was down from last report at $445-$455/st FOB for cash market tons, with one supplier offering forward contract sales for June at the $435/st FOB level. North Dakota sources tagged delivered ammonia at $480-$505/st, depending on supplier, with the upper end reflecting the dealer reference price from Dakota Gasification.
Eastern Canada: Anhydrous ammonia was pegged at $625-$640/mt FOB Courtright, Ont., with the low quoted as the net price and the upper end reflecting dealer reference levels.
Black Sea:With the Tampa price softening, sources say the Yuzhnyy price is following suit. Asian sources point to an ever-softening price. One buyer said by the end of June the price would be near $210/mt FOB. Another source noted that even though the conventional wisdom would agree with that assessment, there has not been any business to test the waters. Pricing ideas for mid-May range from $250-$260/mt FOB to $240-$250/mt FOB.
One trader noted that the people talking $240/mt FOB are testing the waters. As of late last week, he said there were no deals at that level. He was convinced, however, that by the time the IFA meeting rolled around $240/mt FOB will be achieved, and a further slide in prices will continue.
It appears that the producers in the area are getting the message that there is little support for their current pricing ideas. Reportedly, they are now getting ready to take a series of rotating maintenance shutdowns beginning later this month or early June.
The turnarounds will help alleviate the pressure of growing inventories. Unfortunately for the producers, said one trader, unless demand picks up there will be few reasons that buyers will accept for higher prices.
Even if the price drops to $240/mt FOB, sources say Yuzhnyy ammonia would not be competitive into the Indian market, which is at the top of the charts right now.
Indian DAP companies concluded talks with the phos acid suppliers earlier than expected. As a result, say sources, more ammonia will be picked up for DAP production.
Right now, the Middle East suppliers have the inside track because of favorable freight rates. For Yuzhnyy material to be considered, sources say the price has to come down to the $210/mt FOB level ?Çô and only if the Middle East price does not alter much at the same time.
The best bet for the market, as far as Asian sources are concerned, is $245-$255/mt FOB. And even that, said one source, is just an educated guess.
Middle East: Stockpiles are building, but relief is on the way. Sources note that with the conclusion of the phos acid talks in India, DAP producers will be looking for more ammonia in the coming weeks. Optimists say Indian buying will be strong and quickly take up the excess tons sitting in storage in the area. Others are not so sure the buying will be as robust as that.
With increased storage capacity in Saudi Arabia and Qatar, sources say the producers can sit on tons until major buying picks up.
Indian buying will step up soon and, say sources, much of the excess ammonia inventories should be taken up.
Even with the Indian business on the horizon, sources say the price should come off a bit.
For now, however, there have been no new spot purchases to set a price. Sources say the market remains in the $250/mt FOB range but is slated for a fall.
India: With the conclusion of the phos acid talks, sources say Indian ammonia demand is expected to jump. Industry observers were surprised at how quickly the talks concluded. They note that in the past the phos acid talks have generally carried over into the annual IFA gathering, leaving the industry plenty to talk about.
UREA
U.S. Gulf: Most players last week were putting the granular urea market somewhere within the $315-$325/st FOB range. One source said the market is “almost in free-fall.” Some sellers were in shock over the quick drop. Others lamented that there are not that many barges at NOLA and no need for such a drop in the prompt market. Some importers blame domestic producers, citing forward pricing programs that significantly discount prices well into the summer. They say this gives buyers a signal that prices are going down, so why buy now. Indeed, what had earlier been reported as June-July prices were bleeding into May last week, according to sources.
In the meantime, the prill market was hard to gauge, though with that product called plentiful, everyone said it was down. Most were putting those prices between $305-$315/st FOB, while others had predicted sub-$300/st FOB.
Eastern Cornbelt: Granular urea pricing also covered a broad range, with the low reported at $380-$385/st FOB spot river locations and the upper end quoted at $395-$400/st FOB inland terminals in the region.
Western Cornbelt: Granular urea was pegged at $380-$390/st FOB in the region, with the low out of spot Mississippi River locations and the upper end to dealers FOB Missouri River terminals.
Northern Plains: Granular urea pricing covered a wide range in the region. Minnesota sources pegged the dealer market at the $390/st FOB mark last week, while North Dakota dealers talked of tight truck availability, with delivered urea quoted as high as $425/st in the state. Forward contract pricing for June from one supplier indicated a softening market, however, with forward offers at $370/st FOB Pine Bend, Minn., and $385/st DEL in North Dakota.
Northeast: Granular urea was quoted at $390-$405/st FOB Baltimore and Philadelphia, although some sources said tons were tapped out last week at Philadelphia and E. Liverpool, Ohio. Delivered urea was pegged as high as $438/st in Pennsylvania.
Eastern Canada: The granular urea market was quoted at $565-$580/mt FOB terminals in Ontario, with rail-delivered product referenced from one supplier at $568/mt in Ontario and Quebec. There were reports of direct-transferred material trading for as low as $530/mt in Hamilton, Ontario, with another vessel due there soon. Urea remained in tight supply, however, with some sources reporting wholesale replacement costs at higher levels than spot retail pricing in early May.
India: It finally arrived. MMTC issued a tender for an unspecified quantity of prilled or granular urea for May-June loadings. The tender closes May 16, with offers to remain valid until the 22nd. The tender documents call for completion of all deliveries to be July 15, with preference given to earlier deliveries.
Sources throughout Asia were commenting how surprised they were not to see MMTC enter the market early last week. Just before the tender was announced, some were even speculating MMTC might wait until the industry gathers in Turkey May 20-24 at the annual IFA meeting.
There was never a doubt in anyone’s mind that MMTC would come in. It was always a matter of when.
Even though the tender call does not specify how many tons it will buy, sources say MMTC should take about 1 million mt.
To meet the arrival deadlines in the expected quantities, sources say the Middle East suppliers will most likely get a lion’s share of the business. Close by will be Chinese cargoes, and lastly material from the CIS.
The shorter shipping time and smaller vessels give the Middle East the edge over all other competitors. A shorter shipping time from China gives urea from that country a leg up on the CIS producers.
The only thing the Yuzhnyy suppliers have going for them is a softening market and panamax capacity.
If MMTC does indeed take 1 million mt, sources say it will have to accept at least a couple of panamax cargoes.
IPL had rejected any deliveries to the port in Mundra, which excluded panamax ships. The MMTC tender carries no such restriction. Last year congestion and delayed off-loading in Indian ports – Mundra in particular – caused a great deal of grief for importers and plenty of political problems. Observers note that the delays led IPL to skip Mundra as a receiving port.
Black Sea: A major trading house is reportedly trolling for tons with bids of $280-$285/mt FOB. What has people talking are the counter offers that are closer to $290/mt FOB.
In just one week, the market moved from $300-$305/mt FOB to $290/mt FOB and possibly below.
Business done into Turkey last week showed a Yuzhnyy equivalent price of $290/mt FOB. While many in the industry agree on the math of the issue, no one has been able to point to any other business to confirm a price that low.
As of late last week sources put the market at $290-$295/mt FOB with room to drop.
What startled some Asian sources was that the $285/mt FOB bids and $290/mt counters were for May tons. With only a couple of weeks left in the month, sources note that the inventories in Yuzhnyy must be high enough that the producers are now getting concerned, even with the MMTC business looming.
One trader noted that even with the MMTC tender under way, Yuzhnyy may not end up a big winner.
The last Indian business under IPL cut out panamax vessels. Shipments were not allowed into Mundra. All other ports are too small for the larger ships.
Once panamax vessels are taken out of contention, say sources, the freight rates for CIS material make the product too expensive to be competitive against the Middle East and China.
Sources say, however, that panamax cargoes will have to be considered by MMTC if it is to meet its needs for June and July deliveries.
Observers speculate that MMTC could easily take a large portion of their June needs from the Middle East and China and then top off their July requirements from the CIS. A lot will depend on the final price.
Middle East: Even with the IPL business on the books, sources say producers are still building up reserves that will soon need to find a home.
Reportedly, only a few vessels have been nominated for May by IPL. As a result, some of the IPL May cargoes are now expected to slide into June.
Still, say sources, even though the material is not loading as rapidly as once expected, the movement is enough to keep the producers happy. Reportedly, no one is pushing any panic buttons yet.
Producers are trying to keep the prices up by claiming they have done pre-tender deals with MMTC, even though no one else has been able to confirm this.
At the same time the Middle East producers are trying to maintain prices around $315/mt FOB, sources say offers from Egypt in competition with AG tons indicate the price might come back closer to $300/mt FOB.
The freight difference between Egyptian and Arab Gulf tons to India is about $5/mt – more or less – and sources report at least some Egyptian tons are being discussed at $295/mt FOB.
No new business from the area has been concluded to test the market, so sources say product remains in the low $300s/mt FOB based on the IPL business.
China: The domestic price should be coming down, but, say sources, producers remain successful in keeping the price artificially high.
Come late June and early July the main domestic season will be over, and producers will start becoming desperate to sell tons, say sources. The most likely destination for the urea will be India.
Sources say plenty of Chinese tons are expected to be offered in the MMTC tender, just as they were offered in the IPL tender.
The main problem dealing with any Chinese urea at this time remains access to vessels.
Reportedly, the Chinese government is encouraging exports of steel and other finished goods instead of items, such as urea, that depend on domestic feedstock.
Bangladesh: A BCIC tender for 50,000 mt each of prills and granular closes May 15. Industry observers wonder if any awards will be made in this latest attempt to buy. No awards were made in the tenders that closed earlier this month.
Indonesia: State-owned PIM has pushed back its selling tender. Sources say production problems caused the delay. Others in the industry think PIM was waiting for the MMTC tender to be announced. One observer noted that by waiting PIM could call a selling tender before the MMTC tender closes and allow a trader to participate with Indonesian material.
Others are skeptical of this plan. They point out that PIM and KALTIM always sell their material in 5,000 mt lots to local traders. International traders then have to scramble around to get enough of these lots to fill an international vessel. With the MMTC tender closing May 16, sources say there is not enough time to call a tender, make awards, and allow an international trader to assemble the needed tons.
Pakistan: Export permits have reportedly been approved in principle, but no papers have yet been signed. The permission to export is needed to allow the sale of material awarded under the IPL tender last month.
Pakistan is not in the market to buy thanks to a deal cut with the Saudi government. Sources say they do not expect to see TCP back in the market until later this year.
NITROGEN SOLUTIONS
U.S. Gulf: Barge prices were hard to come by, as most sources said UAN is in very short supply. Some players were scratching their heads over forward pricing, noting that recent prompt UAN barge prices have been in the $260s/st FOB, with summer cargoes being offered at huge discounts.
Eastern Cornbelt: UAN-32 movement was picking up steam last week, with the dealer market quoted at $288-$298/st ($9.00-$9.31/unit) FOB terminals. The low end was reported by Illinois sources out of spot river terminals, with the upper level out of inland locations.
Western Cornbelt: UAN-32 remained at $288-$300/st ($9.00-$9.38/unit) FOB regional terminals and in tight supply.
Northern Plains: UAN movement was at a “trickle”
in Minnesota until sidedress applications get underway in
earnest, according to one source. The market was quoted at
$9.15-$9.30/unit FOB Minnesota terminals and in tight supply,
with delivered UAN-28 quoted at the $275/st ($9.82/unit)
mark in North Dakota from Canadian shipping points.
Northeast: The UAN-30 market was quoted at $242-$247/
st ($8.06-$8.23/unit) FOB, with the upper end reflecting dealer
reference pricing from one supplier FOB Baltimore last week.
Sources described terminal supplies as adequate, although
hand-to-mouth in some areas of heavy movement due to truck
unavailability. One Pennsylvania source quoted delivered
UAN-30 at the $264/st ($8.80/unit) mark last week.
The dealer reference price for UAN-32 FOB terminals
in upstate New York had reportedly firmed to the $300/st
($9.38/unit) FOB mark before discounts. The vessel market
last week was quoted at $265-$268/mt C&F for any new
business.
Eastern Canada: Ontario sources pegged the UAN market at $318-$322/mt ($11.36-$11.50/unit) for 28 percent and $363/mt ($11.34/unit) for 32 percent, with spotty availability reported last week.
AMMONIUM NITRATE
U.S. Gulf: Activity and demand were reported to be low, with the last done business still called $265-$270/st FOB.
Western Cornbelt: Ammonium nitrate was tagged at $325/st FOB in Iowa and $335/st DEL in Nebraska.
Eastern Canada: Ammonium nitrate was quoted at $395-$403/mt FOB in Ontario, and up to $425-$430/mt DEL in New Brunswick.
AMMONIUM SULFATE
Eastern Cornbelt: Ammonium sulfate supplies remained extremely tight in the region, if not completely tapped out. One source said the last sale he knew of occurred at a firm $250/st FOB for granular sulfate, and suppliers were reportedly talking of no new orders available until June.
Western Cornbelt: Granular ammonium sulfate was quoted at $240-$250/st FOB, but product was extremely tight, with many sources saying new tons were simply unavailable.
Northern Plains: Granular ammonium sulfate remained in extremely tight supply, with numerous sources saying they were sold out with zero tons in the bin. North Dakota sources quoted the delivered market at $220-$230/st, with the low from Dakota Gasification and the upper end for Canadian product. List prices from Dakota Gasification remained at $220/st in North Dakota, $225/st in Montana, $230/st in Minnesota, $235/st in South Dakota, and $265/st in Saskatchewan and Manitoba.
Northeast: Ammonium sulfate, according to most sources, was simply unavailable for new sales last week, and pricing quotes were nearly impossible to come by. The only current price offered was a $255/st DEL level in Pennsylvania, which was up significantly from last report.
Eastern Canada: Granular ammonium sulfate was quoted at $315-$320/mt FOB in Ontario, up considerably from last report. There were also reports of rail-DEL sulfate being offered for as low as $295/mt last week, but sales at that level could not be confirmed.
PHOSPHATES
Central Florida: Activity in the Southeast slowed last week as a result of extremely dry conditions and hot weather. In Florida, 220 wild fires had burned at least 80,000 acres, and one blaze that spanned the Florida/Georgia state line had charred more than 100,000 acres in Georgia. A subtropical storm in the Atlantic, which formed two-and-a-half weeks before the official beginning of the Hurricane season, was likely to bring rain to the Carolinas but will probably leave both Florida and Georgia untouched.
Activity in the Northeast was beginning to take off last week, but estimates were that fewer phosphates will be used there this year as a result of the delayed start to planting. Meanwhile, reports from the Midwest were mixed, with heavy rain and flooding in some areas served by railcars.
Interest in Mosaic’s summer fill program and CF’s future pricing plan was said to be tapering off last week, because those deals will begin loading on June 1 – only two weeks hence. The price for both were $365/st FOB. Sources said the price for prompt deliveries by rail will likely fall backwards to the fill price, and probably be in the same range around June 1.
Although prompt sales were sparse last week, a sale of two railcars of DAP was made to a trader for resale into the Northeast at $370/st FOB less a $3/st FOB discount. As a result, the Central Florida DAP price range was readjusted from the previous week’s $380-$390/st FOB to a flat $370/st FOB, which was the same it had been a few weeks earlier. Mosaic charges $4/st FOB less for MAP, while other producers in Central Florida price MAP the same as DAP. PCS’s Central Florida reference price remained at $380/st FOB. In Texas, Agrifos was selling truck loads at $425-$430/st FOB. DAP prices were likely to remain stagnant or decline slight this week.
U.S. Gulf: Barge sales came to a grinding halt last week on the nation’s river system, as heavy rains and destructive tornadoes took a toll. In addition to the fatal tornado in Kansas, runoff water was causing flooding on the Missouri River and water levels were quickly rising on the Arkansas River. Missouri, Kansas, Oklahoma, and portions of northern Texas suffered the most. North of Kansas City, the Missouri was overflowing its banks and homes and fields were flooded. The up side of that situation was deeper water for barge traffic, but DAP barges were said to be in short supply.
Rain was bringing the worst problems in Missouri, where farmers had already planted their corn crops. Earlier, cold weather killed much of the state’s wheat crop, so farmers were taking a double whammy there. In Missouri, the corn crop can be replanted as late as May 31, but that will not likely mean any additional sales of phosphates.
Buyers were holding back last week in order to see what direction the market will take. The summer fill program offered by Mosaic and CF’s forward pricing plan had prices set at $385/st FOB and $390/st FOB, respectively, for loading June through August. Both of those prices were below the current index, so buyers were taking a “wait-and-see” approach. One source predicted that DAP prices will fall this summer to the $350-$360/st FOB range, while another guessed $370-$375/st FOB. Many others disagreed and believed phosphate prices will remain closer to fill prices.
Although offers last week were in the $395-$400/st FOB range, no sales at those levels were made, so the NOLA DAP barge price range remained unchanged at $398-$403/st FOB. Expect phosphate prices to weaken this week, say sources.
Eastern Cornbelt: DAP and MAP were quoted at $418-$435/st FOB regional warehouses, down slightly from last report, with the lower numbers out of spot river locations and the upper end inland. The dealer market for DAP FOB Cincinnati, Ohio, was pegged by one source last week at the $421/st level. No current prices were reported for TSP.
10-34-0 was also in extremely tight supply in the region, with the last sales and/or offers quoted in the $335-$350/st FOB range.
Western Cornbelt: DAP and MAP were quoted at $415-$435/st FOB regional warehouses, depending on location, with the low reported at St. Louis, Mo., for spot sales. Dealer reference levels remained as high as $440/st FOB at some warehouse locations last week. No market was reported for TSP in the region. 10-34-0 was extremely tight, with spot pricing continuing to fall in a wide range at $335-$360/st FOB in the region.
Effective June 1, phosphoric acid pricing from Agrium will firm to $690/st for SPA and $680/st for MGA rail-DEL in Iowa, Missouri, Nebraska, Minnesota, the Dakotas, Colorado, Kansas, Oklahoma, New Mexico, and Texas. A $5/st increase for both products is slated for August, and again in September.
Northern Plains: DAP and MAP remained at $415-$425/st FOB regional warehouses, with delivered MAP quoted in a broad range at $430-$445/st in North Dakota, depending on supplier, point of origin, and product availability. One supplier was offering forward contract sales for June FOB Pine Bend at $424/st for DAP and $421/st for MAP. As for summer fill, one dealer reported booking about 30 percent of his fall phosphates needs, and said many were approaching forward purchases conservatively.
10-34-0 was also in very tight supply, with several Minnesota sources claiming the last business in the $320-$340/st FOB range. On a delivered basis, 10-34-0 was pegged as high as $375/st in North Dakota.
Northeast: DAP and MAP covered a broad range at $427-$442/st FOB in the region, with one source quoting delivered MAP at the $457/st level for new sales. 10-34-0 remained at $285-$305/st FOB in the region, with delivered product quoted at the $295/st mark in southern Pennsylvania last week.
Eastern Canada: MAP was tagged at $565-$582/mt FOB in Ontario and in very tight supply. DAP was steady at $570-$575/mt FOB the warehouse “if you can find it,” said one source. TSP was also in very tight supply, with reports that dealer pricing had firmed dramatically to the $535/mt FOB mark in Ontario, where available. Said one source about the phosphate market, “Guys that didn’t buy early are out of luck; there is none.”
One Ontario source said a summer fill program was being offered earlier for MAP at the $550/mt mark for stored tons. He said he committed to about 20 percent of his fall needs at that level.
Western U.S.: Effective June 1, phosphoric acid prices from Agrium will firm to $700/st for SPA and $690/st for MGA railDEL in Arizona, California, Idaho, Montana, Nevada, Oregon, Utah, Washington, and Wyoming. A $5/st increase for both products is slated for August, and again in September.
U.S. Export: Last week, PhosChem made a sale of 3,000 mt into Central America at $430/st FOB. In addition, a trader purchased either one or two vessels of phosphate from Tunisia for resale into Pakistan, but the price was unavailable. India was in the process of considering the results of a tender offered recently, but had made no decision. PhosChem nominated tons for that tender to a third party.
The export season normally begins about June 1, but the biggest unknown last week was whether China will adopt a strict export tax on phosphates to make sure its own agricultural industry has sufficient supplies. India and Pakistan have been major customers of China, but will be forced to buy from other sources if that occurs. China was expected to announce its decision on the export tax on either June 1 or July 1. If that does happen the door will be open to U.S. phosphate producers, but FOB prices may have to decline in order to be competitive. Ocean freight rates to India have risen to about $70/mt from the high $30/mt range, and that will put a crimp in U.S. export sales or prices. Still, even if the price fell to $400/mt FOB, PhosChem’s members would reap a handsome profit.
Based on the most recent sale, the export DAP price range last week fell to $430-$433/mt FOB from the previous week’s range of $433-$435/mt FOB. Prices will likely weaken in the coming weeks due to high ocean freights, according to sources.
POTASH
Eastern Cornbelt: Potash was quoted at $218-$225/st FOB regional warehouses, depending on grade and location, with most dealer quotes for granular potash now at the upper end of that range. One supplier reportedly upped its asking price to the $225/st FOB level in early May based on increasingly tight supplies at the warehouse level.
Western Cornbelt: Potash remained at $215-$226/st FOB regional warehouses, depending on grade and location. One supplier had reportedly raised its reference price for red granular potash to as high as $240/st FOB in Nebraska.
Northern Plains: Minnesota sources tagged the potash market at $230-$235/st FOB the warehouse for new tons, depending on grade. That level reflected an increase of roughly $10/st from last report. June 1 potash postings from PCS Sales FOB Saskatchewan mines include standard at $208/st, soluble and granular at $213/st, and white granular at $218/st.
Northeast: Delivered potash was quoted at $237-$250/st in the region last week, depending on grade and location, with the warehouse market ranging from $226-$235/st. One source quoted delivered 60 percent potash at the $245/st mark to his location, with 62 percent soluble priced at $250/st DEL.
Eastern Canada: Potash FOB New Brunswick mines remained at $257-$263/mt, depending on grade, with reports of an increase slated for June 1. Out of the warehouse system, potash pricing ranged from $285-$303/mt in the region. Ontario sources tagged the warehouse market at $298/mt FOB for red 60 percent product and $303/mt FOB for 62 percent granular muriate. Rail-delivered coarse potash was also available from one supplier at $301/mt in Ontario and Quebec.
SULFUR
Tampa/WestCoast: Sulfur supplies on the Gulf Coast and the West Coast remained tight last week, although better than a month earlier. One of the reasons was refineries were not operating at capacity – generally less than 90 percent – as a result of problems with the aging facilities. In addition to the reducing sulfur volumes, that situation has kept the price of gasoline around $3/gallon.
Valero’s Texas City refinery was scheduled to begin a turnaround on May 31 that will continue for about 35 days. During that period, sulfur output will be reduced about 110 lt/day from the normal production level of 600 lt/day, which will reduce the sulfur flow into the market by about 4,000 lt.
With the settlement of second-quarter sulfur prices at a bump of $5.50/lt over the previous quarter, the industry settled back to prepare for next quarter’s negotiations, which may be prolonged again.
Vancouver: With improved weather and the CN rail strike on hold, Vancouver was working hard to play catch up to save as many sales as possible. However, business lost the previous few months cannot be recaptured.
Meanwhile, it appeared the world sulfur market was reaching its peak last week, and spot prices were leveling off.
MARKET NOTES
India: The June-September monsoon is expected to break over the South Andaman Sea within the next 72 hours, almost a week earlier than normal, a weather official said on May 9. The monsoon usually arrives in the area around May 18. There is on average a gap of two weeks between its arrival there and the breaking of another branch of the monsoon over the southern state of Kerala, the official said.
The availability of foodgrains, including cereals and pulses, has fallen to the lowest level in the past two decades, reflecting the slow growth in the country’s agriculture sector. According to a presentation made by the Planning Commission to the prime minister, per capita availability of foodgrains fell from 190 kg per year during 1976-80 to a low of 186 kg during 2004-07. India’s population in the same period has increased nearly 60 percent, to more than 1.1 billion in 2007, compared to 1981 census figures of 684 million.
The Commission underlined the need for taking urgent steps to reverse the declining trend in growth of agriculture and raise the output by at least 4 percent during the 11th Plan period. The per capita availability of cereals declined from 179 kg per year during 1981-85 to 174 kg during 2004-07. The availability of pulses also declined from 19 kg per person to 12 kg per persons during the same period.
CF Industries Holdings Inc. shareholders on May 9 elected two members of the board of directors and ratified the selection of KPMG LLP as the company’s independent registered public accounting firm for 2007. Elected for three-year terms were Robert Arzbaecher and Edward Schmitt, both current board members since 2005. Arzbaecher is chairman, president, and CEO of Actuant Corp., which makes and markets industrial products and systems. Schmitt is chairman, president, and CEO of Georgia Gulf Corp., a chemical manufacturer.
Dr. Kenneth Stuart Courtis has joined Noble Group as a non-executive director. He is an investment banker and analyst of Asian economies. He is the founding chairman of Next Capital Partners and belongs to several boards. He has also held senior positions with Goldman Sachs Asia and Deutsche Bank Group Asia.
The Mid Kansas Cooperative Association announced that, effective June 1, Kevin Snyder will join the company’s agronomy division as field marketer serving the Lindsborg, Kan., area. Snyder holds a degree in agriculture from McPherson College in McPherson, Kan., and his work experience includes positions with Collingwood Grain of Garden City, Kan., and American Cyanamid of western Kansas. Most recently, he served as a district manager for Stine Seed Company in Illinois. MKC’s Agronomy division includes Bruce Vernon, sales and marketing manager, seven field marketers, and two seed representatives.
Reno, Nev.-Itronics Inc. is going Hollywood with its successful GOLD’n GRO fertilizer, produced from photo chemical wastes. NBC TV requested and was provided two labeled containers of GOLD’n GRO for an episode of the well-rated program “Crossing Jordan” that was supposed to air May 9. Itronics reported that producers said the product will be visible to viewers. “We don’t know why they picked us, other than someone in environmentally conscious Hollywood might have known that our fertilizer is environmentally beneficial and is derived from turning wastes into a very useful product,” said Itronics President Dr. John Whitney.
Singapore-Noble Group reported net profit of US$43.8 million ($1.76 per diluted share) on sales of $4.1 billion for the first quarter ending March 31, 2007. Year-ago net profit was $35.1 million on sales of $2.8 billion.
Suffolk, Va.-Hampton Roads Sanitation District’s Nansemond wastewater treatment plant located here has successfully completed pilot-testing of an innovative technology that produces what is considered an environmentally safe, commercial fertilizer from the recycle stream. Nansemond Plant Manager Bill Balzer told Green Markets, “The fertilizer is a slow release product with an NPK of 5-28-0, plus 10 percent magnesium.” Balzer said that the process uses chemical reactions to remove nutrients from wastewaters being recycled back to the treatment plant. Struvite crystals are formed when the ammonia and phosphorus from the recycle stream come into contact with magnesium chloraide used as a seed material to generate small pellets of magnesium ammonium phosphate. “The pilot test demonstrated that approximately 85 percent of the phosphorous and 40 percent of the ammonia in the recycle stream can be removed by the process,” Balzer said. The developer, Ostara Nutrient Recovery Technologies Inc., of Vancouver, B.C., claims that efficiency is improved and costs reduced, along with savings in maintenance requirements. A proposal is currently being reviewed to install and operate a full-scale facility. Ostara President and CEO Phillip Abrary said many treatment plants such as Nansemond are effective at biologically removing phosphorus and nitrogen with anaerobic digestion, but are left with handling a significant amount of nutrients in the recycle stream. He said the first commercial plant using this technology will begin operating shortly in Edmonton, Alberta, and another pilot program is scheduled in Portland, Ore. Ostara has identified as many as 400 municipalities in North America and 50 in Europe that could improve operations with this process.
Tallahassee-After governments in Sarasota and Lee counties moved quickly to adopt their own rules for fertilizer application, the Florida Legislature failed to approve a statewide change before the regular session ended last week. If the state measure had been approved, local governments would have been banned from making their own rules beginning May 1. The fertilizer industry had pushed for the passage of the bill, CS/CS/HB 1197, in order to make rules uniform on a statewide basis. The bill would have established a study commission to recommend the new rules. Many local governments feared statewide rules might not go far enough to protect their waterways. Gov. Charlie Christ has called a special session, to begin June 1, to deal with property taxes and auto insurance, but the fertilizer legislation will not be considered in that session.
Washington-The Fertilizer Institute has announced a $1 million commitment in the name of the Nutrients for Life Foundation to the Smithsonian Institution for an exhibition about soils at the Smithsonian’s National Museum of Natural History in Washington, D.C. Through this donation, TFI and Nutrients for Life will be the designated lead sponsors of this exhibit, scheduled to open in July of 2008, at the Natural History Museum, the most visited natural history museum in the world. The 5,000 square foot soils exhibit is being developed by the Smithsonian in partnership with the Soil Science Society of America (SSSA), and is designed to increase the level of public awareness about the important role of soils in our world by educating visitors about the many ways soil is essential to human life. “Fertilizer is an integral component in aiding soils’ role in environmental health and food security,” said TFI and Nutrients for Life President Ford West. “Through our sponsorship of the exhibit, we hope the museum’s over 6 million visitors annually will gain a greater appreciation of the role modern agriculture plays in sustaining healthy soils.” The soils exhibit, which will occupy one hall of the museum, will be on display in Washington, D.C., until January 2010, after which it may go on a three-to-four year National Tour through the Smithsonian Institution Traveling Exhibition Service (SITES). The exhibit will also include a display of soil monoliths from 50 states, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands. Other exhibit partners include SSSA, the U.S. Department of Interior’s Bureau of Land Management, and several U.S. Department of Agriculture agencies, including the Natural Resources Conservation Service. “Given Nutrients for Life’s work to better educate the public and policymakers about the tremendous role fertilizers play in improving peoples’ lives, the Smithsonian exhibit provides an ideal opportunity to promote science-based messages about agriculture to millions of museum visitors each year,” said West.
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