St. Paul-CHS Inc. reported income for the first half (Sept. 1, 2010; Feb. 28, 2011) of its 2011 fiscal year of $396.3 million. This was a nearly 96 percent increase over the year-ago $202.6 million. Revenues for the first half reached $15.8 billion, up from the year-ago $12.1 billion. For the second quarter (Dec. 1, 2010; Feb. 28, 2011) CHS posted income of $194.6 million, compared with the year-ago $82.7 million. Revenues for the quarter were $7.7 billion, up from $5.9 billion a year ago. Second-quarter Ag Business earnings were $86.9 million, up from the year-ago $62.4 million, while year-to-date earnings were $241.6 million, up from $171.5 million. The Ag Business unit consists of grain marketing, crop nutrients, local retail operations, and oilseed processing businesses. CHS reported both increased grain demand and fertilizer activity. YTD earnings from the Energy segment reflected strong margins for petroleum refining operations driven by global market conditions, along with strong performance for its renewable fuels marketing business. Earnings were also strong for the CHS financing and hedging businesses, along with its Ventura Foods LLC, vegetable-oil based food, and Horizon Milling LLC, wheat milling joint ventures.
U.S. Gulf/Tampa: Negotiations for May had not begun last week, but it appeared the price could go up. Sources cited recent gas curtailments in Trinidad, as well as a Yara turnaround there. They also pointed to higher prices on the world market. Sellers may seek an increase of between $20-$25/mt for May.
Eastern Cornbelt: Ammonia pricing was steady at $675-$695/st FOB in the region, with the low out of Illinois terminals and the upper end in Indiana. Offers for fall ammonia tons were at the $675/st FOB level in the Illinois market.
Sources described fieldwork as spotty in the region at mid-month due to wet conditions. “There has not been a huge amount planted, but we’ve been able to scatter some ammonia and dry fairly well, so the crunch won’t be quite so bad when it opens up again,” said one contact.
Western Cornbelt: An Iowa source said a blistering application pace in early April allowed his business to complete 90 percent of its ammonia season in just nine days this spring. Wet conditions limited fieldwork in the region at mid-month, however. He said ammonia volumes were average to slightly above average this year.
The ammonia market was tagged at $625-$650/st FOB regional terminals for prompt tons, down slightly from last report.
California: The anhydrous ammonia market remained at $685-$690/st truck-DEL in the state, with aqua ammonia referenced at the $185/st FOB mark.
One source said California growers were fertilizing cotton ground, sidedressing tomatoes, and fertilizing tree crops in the southern Sacramento Valley, and Central Valley contacts said preplant fertilizer was moving steadily on corn ground.
Pacific Northwest: The anhydrous ammonia market was quoted at $720-$735/st DEL in Washington, reflecting an increase from March pricing levels.
One Washington source said growers in his trade area are behind on spring planting, but steady activity at mid-month was helping some areas catch up. Wind continued to slow activity in the state, however, and sources also complained of cold temperatures. “Spring has sprung, but we definitely could use some heat units,” said one central Washington contact last week.
Western Canada: Anhydrous ammonia was steady at $817-$825/mt DEL in Manitoba, $825-$834/mt DEL in Saskatchewan, and $834-$861/mt DEL in Alberta. Dealer postings were in the $827-$871/mt DEL range in the region.
One source said March fertilizer shipments to the farm were heavy as growers anticipated spring thaw-related fieldwork delays in April. Dealers continued to talk of high expectations for the 2011 fertilizer year, citing strong canola and wheat prices.
India: Even though demand remains strong, FACT cancelled its 7,500 mt tender. Sources say the buyer was not pleased with the prices offered from the Arab Gulf producers. The lowest offer in the tender was $538/mt CFR.
Asian sources said FACT will still need the material. The issue remains finding a seller willing to offer tons at a lower price.
The higher ammonia price to India reflects a general global price rise.
Middle East: Prices are holding in the low $500s/mt FOB. Demand for ammonia remains strong as area producers report full order books into May.
The strength of the market has traders looking for any signs of a season downturn in prices.
Black Sea: Even as the spring direct application begins to wane in the U.S., sources report strong sales out of Yuzhnyy. The price remains in the low $500s/mt FOB, with producers reportedly sold out for the rest of April and strong order intentions for May.
Agrium Inc. has announced the following organizational changes to support the corporation’s growth strategy: Leslie O’Donoghue, chief legal officer and senior vice president, business development, has been appointed executive vice president, operations.
Stephen Dyer, manager, West region in Retail, has been appointed executive vice president and chief financial officer.
Bruce Waterman, senior vice president, finance and CFO, has been appointed executive vice president and chief strategy development and investment officer.
Kevin Helash, vice president, marketing and distribution in Wholesale, has been appointed to manage the Canadian/U.S. Pacific Northwest region for Retail.
Greg Yont, senior director, Wholesale business development, has been appointed to the position of vice president, marketing Wholesale.
Andy Kelemen, senior director, global strategy and business development, has been appointed vice president supply management in Wholesale.
The Scotts Miracle-Gro Co. has announced that Jim Lyski has been named executive vice president and chief marketing officer, reporting to ScottsMiracle-Gro President Barry Sanders. “Jim will drive closer alignment between our marketing organization and our consumers by sharpening our focus on insights and analytics and providing increased regional marketing support,” said Sanders. “He brings an impressive background to ScottsMiracle-Gro, and I have every confidence in his capability to further position the company for success now and in the future.” Lyski will also be accountable for advancing the company’s “Consumer First” strategy, specifically to maximize opportunities for sustainable brand portfolio and market share growth, along with continuing to build stronger relationships with consumers. Prior to joining Scotts, Lyski was chief marketing officer for Nationwide Insurance in Columbus, Ohio, where he was responsible for corporate strategy, marketing, brand management, advertising, and communications. He has also held senior level positions in strategy and marketing for CIGNA HealthCare Inc. and FedEx Corp. Lyski serves as president of the board of trustees for the Wexner Center Foundation. He graduated from the University of Oregon with an MBA and a bachelor’s degree in advertising.
Amarillo, Texas-EnergyNet, an online auction service, said April 13 that the State of North Dakota has retained it to develop and host an online auction for the state’s offering of potash leases and associated subsurface minerals in Burke County, N.D. The state has given notice that the leases are available for online research at EnergyNet.com, subsequently opening for bids online. Sale information is available at the following URL: http://gov.energynet.com. The two-week due diligence period for all tracts started April 12, 2011, at 10:00 a.m. CDT. The one-week online auction bidding period for all tracts will begin at 10:00 a.m. CDT April 26, 2011. Specific opening and closing times for each tract are listed on the Web site.
Haifa, Israel-Another work dispute may be in the offing at Haifa Chemicals, the world’s largest producer of potassium nitrate. The company’s management is refusing to pay for the six-day lockout three weeks ago (GM March 28, 2011). The management charges that the strike by workers caused damage to the Haifa production plant that led to a forced shutdown in order to repair the facility. Some 250 workers are affected by the management move, and they are threatening to impose sanctions unless they are paid for the six-day shutdown.
Moscow-Uralkali announced that as the result of a hearing held April 13 by the Arbitration Court of Appeals, the injunction imposed by the Perm Territory Arbitration Court Feb. 25, 2011, halting the advance of the Uralkali/Silvinit merger has been lifted. “Lifting the injunction as well as the recent approval by the Russian Antimonopoly Service of the proposed combination of Uralkali and Silvinit will allow us to complete the merger, pursuant to the previously announced timetable and in accordance with the terms announced and subsequently supported by the overwhelming majority shareholders of both companies,” said Vladislav Baumgertner, Uralkali CEO. In other news, both companies announced their production results for the three months ended March 31, 2011. Over that period Uralkali shipped 1.265 million mt of potassium chloride (KCl), which is 2 percent higher than in Q1-2010. Silvinit shipped approximately 1.34 million mt of KCl in the first quarter, an increase of 16 percent on the corresponding quarter in 2010. “The first three months of this year have seen both Uralkali and Silvinit reach pre-crisis production levels,” said Baumgertner. “This was achieved through extensive maintenance work that the two companies carried out at their production units. In addition, in Q1-2011 Silvinit completed a project converting Shaft 3 of SKRU-3 from the extraction of sodium chloride to sylvinite ore.
Elburn, Ill.-Elburn Cooperative Co. didn’t want to risk losing part of the family when Stover Brothers Trucking was put up for sale after 65 years in the business. After all, Stover Brothers had been a key part of Elburn Co-op as the primary hauler of fertilizer and grain for 40 of those 65 years. So Elburn jumped at the chance to buy Stover Brothers. “Trucks are trucks, but employees make the company,” Elburn General Manager John Husk offered. “Our customers have come to rely on Stover Brothers, so it was natural for us to purchase their assets and take on their drivers as our employees.” Husk said he was sure Elburn customers would be pleased about the development since “they will still get the same service with the change of ownership “right down to the drivers they are used to seeing week after week. The only difference will be the name on the side of the truck.” Stover Brothers Trucking started in 1946 with only a semi and a straight truck. Since then, the company has grown into a full-fledged operation with 13 trucks and drivers. But it was that rapid growth and the constantly changing marketplace that led the Stover family to consider selling. “Everything has a life cycle,” said Roger Stover, Stover president. “We knew we didn’t have another generation to keep the business going, and we wanted to make sure we could continue to take care of our loyal customers and our drivers.” His brother, Rick, commented that the Stover family could not be more pleased with the end result. “It is a perfect fit for us,” he added. “We’ve grown with Elburn Cooperative, and our guys are who the farmers see as the face of their company.”
Horace, N.D.-Residents of this southeast North Dakota town in a one-mile area surrounding Harvest States Elevator were warned Saturday, April 9, around 10 a.m. to stay inside while emergency responders took care of an anhydrous ammonia release of an estimated 125 gallons at that site from a faulty tank valve. Horace Fire & Rescue, along with the Cass County sheriff’s office, responded, and had eight or nine in the group suit up with breathing apparatus to close off the valve on the 30,000 gallon tank and transfer the contents to another tank. “We didn’t evacuate during this time, but made occupants stay inside their homes and closed off the area a mile on each side,” Sheriffs Cpl. Dean Haaland told Green Markets. He said the situation was brought under control in about 45 minutes, but a small ammonia cloud was visible for awhile afterwards. The public was cautioned to stay away from the town and residents were asked to stay inside their homes for several hours. Harvest States is south of Horace.
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.
