U.S. Gulf: Barges remained at $300-$302/st FOB, with no interest reported.
July-December ammonium nitrate imports were up 12 percent, to 256,893 st from the year-ago 228,542 st. December was up 20 percent, to 34,339 st from 28,583 st.
Western Cornbelt: Ammonium nitrate was quoted at $360/st FOB in the Western Cornbelt. The Catoosa ammonium nitrate market was reported at $345-$350/st FOB last week.
California: Calamco’s AN-20 price in California dropped on Feb. 1 to $300/st DEL, down from the previous $315/st posted level.
CAN-17 was pegged at $332-$352/st FOB in California, depending on location and supplier, with the lower numbers reported out of deep water terminals and the higher numbers at inland desert locations. Agrium’s CAN-17 postings firmed on Feb. 1 to $340/st FOB Woodland and $345/st FOB Helm for truck tons, up $10/st from the previous list price at those locations.
Pacific Northwest: AN-20 was steady at $260/st FOB Kennewick, Wash., and $270/st rail-DEL in the Pacific Northwest.
CAN-17 remained at $300/st FOB Kennewick and $325/st rail-DEL in the region.
The Andersons Inc., Maumee, Ohio, reports that Grain Group President Dennis (Denny) Addis has announced his plans to retire in May. Neill McKinstray, president of the Ethanol Group, will assume leadership over both groups after Addis retires.
Addis spent all but three of his 43 years with The Andersons in the Plant Nutrient Group, ultimately serving as the group’s president for 11 years. He has served as the president of the Grain Group since 2012.
McKinstray is a 39-year veteran with The Andersons, including more than 30 years working at increasing levels of responsibility in the Grain Group. He became president of the Ethanol Group in 2011.
Compass Minerals reported 2014 net earnings of $217.9 million ($6.44 per diluted share) on sales of $1.28 billion, up from 2013’s $130.8 million ($3.88 per share) on sales of $1.13 billion. However, a one-time insurance recovery of $60.6 million after tax, as a result of the 2011 tornado at the Goderich, Ont., salt mine, brought the adjusted 2014 figure down to $162.4 million ($4.79 per share), still ahead of 2013.
Compass also announced last week that its board has approved an expansion of its Ogden, Utah, facility to add a second crystallizer and improve its compaction abilities there. “Once these investments are completed in 2016, we’re expecting to meaningfully increase our production of SOP both from pond-based feedstock and KCL conversion,” CEO Fran Malecha told analysts.
Other Plant Nutrition initiatives include the April 2014 purchase of Wolf Trax®, the repositioning of its sulfate of potash as branded Protassium+, and the introduction of a new phosphate/micronutrient product.
Plant Nutrition 2014 operating earnings were $74.8 million on sales of $270.2 million, up from the year-ago $58.7 million and $198.6 million, respectively. Sales volumes moved up to 396,000 st from 315,000 st, with average prices up at $682/st from $630/st. Higher production levels were reported at the Ogden, Utah, site in 2014, though those levels are not expected to be sustained in 2015. As it did in 2014, Compass expects to supplement SOP production with purchased potash. Even with purchased KCL feedstock in 2014, Compass said its per unit cost went down to $421/st from 2013’s $456/st. However, it expects additional feedstock costs to boost its cost for the full year 2015 by $100/st.
Salt 2014 operating earnings were $291.4 million on sales of $1 billion, up from the year-ago $181.3 million and $920.5 million, respectively. Average prices were up at $75.44/st on volumes of 13.29 million st, an increase from 2013’s $69.39/st and 13.26 million st, respectively.
Compass-wide fourth-quarter earnings were $80.5 million ($2.38 per share) on sales of $433.4 million, up from the year-ago $58.4 million ($1.73 per share) and $387.4 million, respectively.
Fourth-quarter Plant Nutrition earnings were $21.6 million on sales of $75.8 million, up from the year-ago $19.7 million and $61.4 million, respectively. Sales volumes were 105,000 st, up from 98,000 st, while average prices were $719/st, up from the year-ago $626/st. On a straight SOP comparison, absent Wolf Trax, the fourth-quarter price was $681/st.
Fourth-quarter Salt earnings were $104.4 million on sales of $355.3 million, up from the year-ago $74.8 million and $323.1 million, respectively. Average prices were $83.13/st on volumes of 4.27 million st, versus the year-ago $67.6 million and 4.78 million st.
Going forward, Compass is expecting first-half Plant Nutrition sales of 180-200,000 st, with average selling prices of $750-$780/st. Full-year volumes are put at 390,000-420,000 st. Selling prices are expected to benefit from a $50/st increase in SOP postings, effective Jan. 1, 2015, as well as traditionally higher Wolf Trax prices, though as noted elsewhere (see pg. 1), the company said that California port disruptions have delayed its Wolf Trax shipments, negatively impacting average selling prices.
Salt projections for the first half are fairly conservative at 5.5-6 million st at an average of $74-$78/st, with full-year sales expected at 12-13 million st. The company noted that while it has been seeing good movement in the North, demand has been off in its Southern markets.
The Compass board has approved a 10 percent increase in the quarterly dividend, to $0.66 per share. It is the 12th consecutive annual increase in the dividend. The company expects 2015 earnings growth, with EPS of $5.10-$5.60.
U.S. Gulf/River: Despite a series of rolling cold fronts reported for the week, all Illinois River locks were reported to be operational except for O’Brien Lock, which will be closed through March 8 for repairs. Rake barges remained the preferred loading apparatus on the Illinois while the frigid conditions persist.
On the Upper Mississippi River, a two-boat average queue length at Lock 27 prompted transit delays of about an hour for the week. The lock’s main chamber will shut down between 6:00 a.m. and 6:00 p.m. daily on Feb. 18 through March 7 for maintenance, and the lock’s auxiliary lock will be offline through March 20.
Weir construction at Upper Mississippi Mile 2.5, responsible for intermittent delays and closures since Feb. 1, was slated to end Feb. 14. The U.S. Army Corps of Engineers continued to push back the start of its rock removal project at Thebes, Ill., until river flows recede to the 11.5-foot mark at Cape Girardeau, Mo. Flows were expected to rise to 13.7 feet by Feb. 13.
Emergency repairs at the Ohio River’s Lock 52, originally scheduled to begin on Feb. 10, were scrapped due to strong currents. Delays of an hour or less were reported at R.C. Byrd Lock. Daytime transit through the auxiliary chamber of the Ohio’s Belleville Lock will be unavailable through Feb. 27, though use of the main chamber was available. Repairs at Newburgh Lock will force intermittent closures April 6 through May 19.
The Monongahela River’s Braddock Lock main chamber remained offline due to ongoing equipment failure. Navigation was available through the lock’s land chamber. On the Allegheny River, the presence of ice continued to hamstring operations last week. Major delays are also anticipated at the Kanawha River’s Winfield Lock, with repairs expected to shutter the lock’s main chamber from Feb. 25 through April 30.
A series of delays were announced for the Tennessee River’s Wilson Lock. Repairs will halt daytime transit through the lock on Feb. 23-27, March 16-20, and May 5 through June 11. The auxiliary chamber will remain open for the duration.
A potential late summer closure at the Arkansas River’s Montgomery Point Lock could see navigation completely stopped between Aug. 24 and Sept. 30.
Channel revetment work at the Lower Mississippi’s Mile 634 complicated daytime transit for the week. Shippers believed the work could temporarily conclude on Feb. 16. The project is expected to run through April 1.
Gulf-area locks experiencing delays included Industrial Lock (4-6 hours), Algiers Lock (2-3 hours), Bayou Sorrel Lock (2-7 hours), and Port Allen Lock (1-2 hours). Daytime transit limitations through Calcasieu Lock were projected to conclude on Feb. 28.
Grain Futures: As of 4 p.m. on Feb. 12, corn and wheat prices were lower compared to the previous week, while soybeans were mixed.
Corn for March 2015 was $3.83/bushel, down from $3.8525/bushel at last report. The May 2015 corn price fell to $3.91/bushel from the previous week’s $3.9325/bushel, while trading of December 2015 corn contracts slipped to $4.13/bushel from the prior week’s $4.16/bushel.
The March 2015 soybean price was $9.8375/bushel, up from $9.8125/bushel the week before, while soybeans for May 2015 fell to $9.8675/bushel from the previous week’s $9.8775/bushel. Soybeans for November 2015 were posted at $9.6425/bushel, down slightly from the prior week’s $9.6475/bushel.
Wheat for March 2015 was $5.2125/bushel, down from the prior week’s $5.2575/bushel. May 2015 wheat was down as well, at $5.1975/bushel from $5.2725/bushel, while July 2015 wheat contracts traded at $5.225/bushel, down from $5.285/bushel at last report.
Eastern Cornbelt: Bitterly cold weather was expected in northern areas of Illinois, Indiana, and Ohio as the week advanced, along with heavy snowfall in some locations.
Temperatures in Chicago fell to the single digits on Feb. 12, with subzero wind chills reported across northern Illinois. Wind chills in northwestern Indiana also dropped below zero on Feb. 11-12, with 4-8 inches of lake effect snow in some areas.
The coldest weather was reported in northern Ohio on Feb. 12-13, with wind chills falling to minus 10-20 in some areas. Lows down to minus 30 were expected on Feb. 14 in parts of northern Ohio, along with 2-4 inches of snow.
Western Cornbelt: Cold, snowy weather remained the norm for much of Iowa, eastern Nebraska, and northern Missouri last week. Another winter weather advisory was issued for northern Iowa on Feb. 10, with freezing temperatures and wintry mix of snow, sleet, and freezing rain reported across multiple counties.
California: February got off to a wet start for Northern California, but a significant winter rainfall deficit persisted for all of the state after a very dry January. Industry sources were concerned that more curtailments of irrigation water will be imposed in 2015 as a result.
Local reports said more than 10 inches fell in Mount Shasta and 4.2 inches in Santa Rosa during the first week of February. The moisture was long overdue, with some parts of Northern California setting a record for no measurable precipitation during January, which is typically the wettest month in California.
While certainly helpful, the February moisture did little to alleviate drought conditions that have worsened since the state’s wet December. As of Feb. 6, the snowpack in the central and southern Sierra Nevada range was only 21-22 percent of normal, while the northern Sierra stood at only 19 percent of normal for that date. As of the first of the year, every major reservoir in California was running below 50 percent of capacity.
Pacific Northwest: Unseasonably warm weather settled over much of the Pacific Northwest in early February, sending temperatures into the 50s and 60s in parts of Idaho and Montana. The mild weather was accompanied by rainfall in some locations, but winter precipitation for the region remained well below normal overall.
USDA’s National Water and Climate Center reported last week that the snow water content of the snowpack in the Oregon Cascades was less than 20 percent of average as of Feb. 9, while snow water levels in Washington’s Cascade range varied from just 18 percent to 56 percent of average. Washington would have to be well over 200 percent of average between now and April 1 to catch up on the snowpack shortfall.
U.S. Gulf: Sulfuric acid delivered to the Gulf was unchanged at $75-$80/mt CFR.
December was a big month for sulfuric acid imports. They were up 122 percent, to 440,786 st from the year-ago 198,475 st. July-December imports were up 14 percent, to 1.84 million st from 1.62 million st.
Tampa: The United Steelworkers union (USW) last week expanded the nation’s first widespread refinery strike since 1980, citing unfair negotiating tactics by oil companies.
BP plc’s massive refinery in Whiting, Ind., and the Husky Energy facility in Toledo, Ohio, were both given 24 hours’ notice of employee walk-offs, according to reports, bringing the total number of striking refineries to 11.
The USW accused refiners of “bad-faith bargaining,” as well as refusing to broach mandatory negotiating subjects, delaying information requests, and threatening striking workers. About 5,440 hourly workers were on strike at the 11 facilities. All but one of the refineries have continued to operate using non-union workers trained in anticipation of a walkout.
The Tesoro refinery in Martinez, Calif., which was already operating at half-capacity, shut down completely, citing safety concerns at the start of the strike. The 166,000 barrel/d facility accounts for about 8 percent of California’s crude refining capacity, leading one consumer group to lobby state officials to investigate the closure.
The USW is seeking larger annual raises and improvements to worker safety protocols, but their bargaining leverage has been weakened substantially by multiyear lows in the price of gas at the pump.
Sulfur industry sources agreed that the strike has created no appreciable production drop-off to date, though traffic in and out of the affected refineries had experienced some slowdown. Nevertheless, a prolonged strike could increase pressure on the refineries over time, sources said.
U.S. refining utilization ticked up last week, marking the third consecutive week of increases since a spate of cold weather-related incidents slashed capacity in the third week of January.
Utilization was rated at 90.0 percent for the week ending Feb. 6, according to the U.S. Energy Information Administration, up slightly from the previous week’s 89.9 percent, but considerably higher than both the year-ago 87.1 percent and the five-year average of 85.2 percent.
Average daily crude inputs were up as well at 15.564 million barrels/d, an increase of 20,000 barrels/d from the 15.544 million barrels/d at last report.
Molten sulfur delivered to Tampa was contracted at $147/lt CFR for the first quarter, up from $129/lt in fourth-quarter 2014.
U.S. Gulf: Gulf sulfur was steady at $160-$165/mt FOB.
U.S. Imports: July-December sulfur imports were off 19 percent, to 921,645 st from the year-ago 1.13 million st. December was off 6 percent, to 158,405 st from 168,726 st.
Vancouver: With the Chinese market on hiatus through February in observance of the Lunar New Year holiday, prices on the Vancouver spot market were unchanged at $165-$175/mt FOB.
Sulfur industry sources were weighing the effect of a potential strike at CP Rail (see pg. 1). One source estimated that 60,000-80,000 mt of monthly sulfur supply could be disrupted by a freight stoppage at CP. Shell Canada is heavily dependent on CP and would be most directly affected, the source said. Other companies were not immune, however, as CP is known to cooperate on some transit segments with CN.
Syncrude 21 remained offline last week. Sources speculated that the facility could resume loading sometime in second-half February. Alberta sulfur was (-)$10-$75/mt for the week.
West Coast: West Coast sulfur was unchanged at $160-$165/mt FOB. First-quarter California molten contracts were in the $90-$130/lt range.
Benelux: The fourth-quarter price of sulfur at Benelux was $158-$172/mt.
ADNOC: The February price of ADNOC sulfur was set at $180/mt FOB, an increase of $22/mt
U.S. Gulf: Sources last week were calling the barge market weaker at $355-$360/st FOB. With some Belarusian imports already at NOLA and more on the way, the matter became a hotter topic of conversation last week (see pg. 1) now that TFI has advised its members to “act with caution.”
So far, Belarusian imports have not shown up in U.S. import figures for the fertilizer year, but potash imports are already up. July-December imports were up 19 percent, to 5.74 million st from the year-ago 4.83 million st, with December up a whopping 53 percent, to 1.02 million st from the year-ago 664,368 st. The extra imports might have been enough to impact prices regardless of what Belarusian tons have in store.
The December increase was due to Canada, with imports from north of the border at 914,816 st, up from the year-ago 575,681 st. Canadian imports for July-December were 4.85 million st, up from the year-ago 4.47 million st.
Other countries with significant year-to-date increases were Chile at 140,322 st versus 54,313 st, Russia at 410,340 st versus 221,685 st, and Israel at 304,965 st versus 72,865 st.
Eastern Cornbelt: Potash remained at $400-$417/st FOB in the Eastern Cornbelt, depending on grade and location, with the upper end reported for white granular tons.
Western Cornbelt: Potash was reported at $405-$417/st FOB in the Western Cornbelt, with the top of the range reflecting reference levels for white granular tons. Sources reported the bulk of pricing quotes for red potash in the $405-$410/st FOB range last week.
The Catoosa potash market remained at $400-$405/st FOB.
California: Potash was unchanged at $518-$535/st FOB warehouses in California, depending on grade and location, with the low for 60 percent and the upper end for 62 percent granular or soluble. Delivered potash remained at $525-$535/st in the state.
Crystalline potassium nitrate was steady at $950/st FOB for bulk and $1,020/st FOB for bags.
Sulfate of potash (SOP) remained in tight supply at $722-$735/st FOB in California.
Pacific Northwest: Potash remained at $461-$475/st FOB and roughly $480-$495/st DEL in the Pacific Northwest, depending on grade and location. The potash market FOB Utah mines was steady as well at $420/st FOB for 60 percent standard and $425/st FOB for 60 percent granular.
The SOP Magnesia market was reported at a firm $481/st FOB in the Pacific Northwest “if you can get it,” with several sources talking of very tight supplies.
The sulfate of potash (SOP) market was also extremely tight and allocated in the region. One source put the market solidly in the $768-$778/st FOB range for new sales, and said this is typically the period for heavy SOP applications in parts of the Columbia Valley. “Due to the high price of SOP, we are seeing a dramatic switch to MOP,” he said.
Western Canada: The regional potash market in Western Canada remained at $470-$480/mt FOB inland warehouses, with the Saskatchewan mine price reported at $445-$450/mt FOB to Canadian customers.
Russia: Uralkali has reconfirmed that it will continue to granulate MOP at all of its production sites at the usual output rate, including Solikamsk #2. It said no interruptions of supply to the U.S. market are foreseen.
Uralkali noted that it is a long-term, consistent supplier of granular potash to the North American market, and it will continue to ship traditional volumes to the U.S. While potash prices have declined since the announcement that BPC will resume shipments to the U.S., Uralkali says it remains committed to its loyal U.S. customers. Uralkali continues to see strong demand for the spring season, citing early pla
Central Florida: Prices held steady in Central Florida last week. DAP railcars were quoted in a range of $435-$440/st FOB, with expectations for new business leaning toward the upper end of the scale. Truck-loaded DAP was called $445/st FOB.
Prices on the Central Florida DAP market were quoted at $435-$445/st FOB, unchanged from the week before. MAP was said to maintain a $20/st edge over DAP.
U.S. Gulf: After a slow start, DAP barge trading picked up as the week wore on. Some said the market found fresh legs after the TFI Annual Meeting in Arizona on Feb. 8-11, with prices moving up to $445-$447/st FOB after opening in the $440-$442/st FOB range.
Those sources ascribed the midweek pickup to a general sense of positivity pervading the conference. “Out of all the products, N, P, or K, phosphate was probably the most encouraging,” said one contact. “If there’s an early spring, and these Moroccan cargoes don’t arrive while we’re still stuck in neutral, things will be pretty good.”
It all hinges on supply, some sources said, noting that Mosaic has already sold out through the first half of March, leading to March and April barge offerings at $455/st FOB.
A pair of Moroccan cargoes, rumored to total 160,000 mt, were said to be on the horizon. Most traders had budgeted around 200,000 mt in total imports for the spring season, one source said.
Current trades are almost exclusively of the trader-to-trader variety, however, which has been credited with supporting prices during lackluster demand. As one trader reasoned, as long as the market isn’t suddenly flooded with imported supply before spring demand kicks in, the barge price should be able to maintain a position of relative strength throughout the season. “No one thinks the price will go up $50,” he said, “but people think there’s $10-$20 there.”
The weather will be a major factor. “Obviously if we keep getting more cold snaps, we could see things slip,” the source continued. “But otherwise the feeling is we’re in good shape.”
MAP barges, while not in high demand, were reportedly strengthening as well. Some market watchers believed MAP values had risen as high as $5-$10/st above DAP, but most called the product $445-$448/st FOB.
The price of DAP on the NOLA barge market was quoted in a range of $440-$447/st FOB, an increase from the previous week’s $440-$445/st FOB. MAP firmed to $445-$448/st FOB, up from $442-$445/st FOB at last report.
U.S. Imports: DAP imports were up 310 percent for July-December, at 350,451 st from the year-ago 85,423 st. December imports were 45,019 st, up from the year-ago 793 st.
In the category MAP/Other, July-December imports were up 197 percent, to 865,360 st from the year-ago 291,508 st. December was 55,001 st, up from 38,885 st.
Eastern Cornbelt: DAP was quoted at $470-$490/st FOB regional warehouses, with the low reported in the Cincinnati market. MAP was $15-$20/st higher than DAP, depending on location.
10-34-0 was steady at $540-$550/st FOB in the Eastern Cornbelt.
Western Cornbelt: DAP was pegged at $475-$480/st FOB in the Western Cornbelt, with MAP $15/st higher. The Catoosa DAP market was also reported in the $475-$480/st FOB range last week, with MAP pegged at $480-$485/st FOB at the port.
10-34-0 was quoted at $530-$540/st FOB for limited tons in the Western Cornbelt.
California: MAP was steady at $580-$590/st rail-DEL or FOB in California. 16-20-0 remained at $418-$425/st rail-DEL or FOB in the state, and the TSP (0-45-0) market was unchanged at $525/st FOB French Camp.
U.S. Imports: July-December imports were up 66 percent, to 200,343 st from the year-ago 120,746 st. December was up 135 percent, to 50,108 st from the year-ago 21,305 st.
Eastern Cornbelt: Granular ammonium sulfate was unchanged at $310-$325/st FOB in the Eastern Cornbelt, depending on location, with rail-delivered tons quoted at $315-$330/st.
Ammonium thiosulfate remained at $345-$350/st FOB in the region.
Western Cornbelt: Granular ammonium sulfate remained in a broad range at $285-$325/st FOB in the Western Cornbelt, with the high in Iowa and the low reported out of spot river locations in Missouri.
Ammonium thiosulfate was steady at $310-$345/st FOB in the region, depending on location.
California: The ammonium sulfate market was quoted in a broad range at $270-$325/st FOB in California, depending on grade, location, and supplier. IRM moved its posting for WesternStandard ammonium sulfate to $270/st FOB Chico and Woodland on Jan. 22, with WesternPremium and Tranzform postings moving on that date to $280/st FOB Chico. Simplot was referenced at $320-$325/st FOB El Centro.
Ammonium thiosulfate was steady at $300/st FOB Stockton.
Pacific Northwest: Granular ammonium sulfate remained in tight supply in the Pacific Northwest. Sources quoted the market in a broad range at $290-$340/st FOB and $300-$345/st DEL, depending on location and supplier.
Ammonium thiosulfate remained at $310-$320/st FOB in the region, with the low FOB Kennewick and the upper end FOB Ritzville, Wash.
Western Canada: Granular ammonium sulfate had reportedly firmed another $35-$50/mt, moving to $525-$545/mt DEL in Western Canada, depending on location.
Disclaimer of Warranty
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.
