Jake Hamlin has been named director of state government affairs for CHS Inc. He will join CHS on June 2, and will be based at the company’s Inver Grove Heights, Minn., headquarters.
Hamlin comes to CHS from Cargill, where he served as director, state government relations, since 2010, and also spent five years as a government affairs associate. Previously, he served as a committee administrator for the Minnesota House of Representatives, policy assistant for the legislative affairs director, and forestry division planner for the Minnesota Department of Natural Resources. He earned an MA in Public Administration from Hamline University, St. Paul, Minn., and a BA in political science from St Olaf College, Northfield, Minn.
U.S. Gulf/Tampa: Sources reported no price movement in the Tampa market, and continued to call it $540/mt CFR. Likewise, NOLA barges were unchanged from the previous week at $540/st FOB.
June NYMEX rolled off the board May 28 at $4.619/mmBtu, up from May 22’s $4.359/mmBtu. July NYMEX closed May 29 at $4.559/mmBtu.
Eastern Cornbelt: The anhydrous ammonia market remained at $655-$675/st FOB terminals in the Eastern Cornbelt, with the low end quoted in Illinois and the upper end out of Indiana terminals.
Sources reported significant planting progress in the region last week, despite powerful storms that surged through central Indiana on May 27 and brought scattered showers to northern Ohio on May 28.
Corn planting as of May 25 was 95 percent complete in Illinois, compared with 87 percent in Indiana and 69 percent in Ohio. Progress was ahead of the five-year average in both Illinois and Indiana, but trailed the average pace in Ohio. USDA reported that fully 88 percent of the corn crop was seeded nationally by May 25, equal to the five-year average pace.
Soybean planting was tracking ahead of the average pace in Illinois and Indiana, with progress rated at 64 percent complete in Illinois and 58 percent in Indiana as of May 25. Ohio growers were trailing the five-year average, however, with only 34 percent of the soybean crop planted by that date. USDA said 59 percent of the soybean crop was planted nationally by May 25, ahead of the five-year average.
Western Cornbelt: Anhydrous ammonia remained flat at $570-$630/st FOB in the Western Cornbelt, with the low out of Nebraska terminals and the upper end in Iowa on a spot basis. Delivered ammonia in the Missouri market was also reported at the $630/st level from southern production points.
Favorable weather allowed growers in the Western Cornbelt to plant virtually all of the corn crop by late May, along with most of the soybeans. Planting progress was either equal to or tracking ahead of the five-year average in all three states in the region.
California: Anhydrous ammonia was steady at $720/st DEL in California, with aqua ammonia referenced at the $195/st FOB level in the state.
Wildfires continued to plague Central and Southern California in late May due to worsening drought conditions. The May 27 U.S. Drought Monitor placed nearly all of California in the extreme to exceptional drought categories, the two worst ratings, with only a portion of southern California labeled in the lesser “severe” drought category.
Cotton planting was virtually complete in the state by May 25, with rice planting tracking ahead of the five-year average at 90 percent complete. Sources said fertigation was underway in the state in late May. “California is still going strong, with the sidedress season in full swing,” said one contact.
Pacific Northwest: Fertilizer movement was starting to slow down in the Pacific Northwest. While supplies remained tight for several products, producers had reportedly lifted allocations on dry phosphate tons. Sources continued to report spot outages at some regional warehouses, however.
Although showers dotted parts of the Pacific Northwest in late May, drought conditions were expanding in the region, according to the May 27 U.S. Drought Monitor. A sizable patch of extreme drought was reported in southeastern Oregon and southwestern Idaho, with severe drought covering much of the southern half of both states. Northern Oregon remained in the abnormally dry to moderate drought categories, while western Washington was generally under moderate to severe drought conditions. Montana remained drought free in late May.
Sources pegged the anhydrous ammonia market at $770/st truck-DEL and $750-$8
U.S. Gulf: The granular barge market saw a boost on the week, with renewed interest said to be coming from all points on the river. Confirmed transactions for loaded and moving product were reported up to $358/st FOB, an $18/st hike from the previous week’s ceiling. Late-week offers were rumored in the $370s/st FOB.
On the low end, a handful of early-week buyers beat the run-up, inking $295-$305/st FOB barges set for loading in the first week of June. Prompt prices had firmed considerably by midweek, however, with sources quoting the new bottom around $320-$340/st FOB.
Product from a vessel in the process of discharging on May 28 was quoted at $350-$355/st FOB, and sources called barges for second-half June loading at $305-$340/st FOB. July granular was quoted around $250-$260/st FOB by a handful of sources.
Prilled urea was unchanged at $350-$355/st FOB.
Eastern Cornbelt: Granular urea pricing was steady at $425-$445/st FOB in the Eastern Cornbelt.
Western Cornbelt: Granular urea remained in a broad range at $390-$435/st FOB in the region, with the low reported in southern Missouri on a spot basis and the upper end in Iowa.
California: The granular urea market was softening in California. Sources quoted the dealer price at $460-$465/st FOB in the state, down $5-$15/st from last report. No current price quotes were reported for delivered urea in late May.
Pacific Northwest: Granular urea had reportedly slipped to $470-$480/st FOB Portland, Ore., down $15/st from last report. Sources said the price may fall further when more tonnage arrives in early June. Delivered urea was pegged at a nominal $500-$510/st in the region, with minimal new business to test the market.
Western Canada: The urea market in Western Canada was pegged at $710-$740/mt DEL for prompt tons, with reports of June sales at the $700/mt rail-DEL level.
India: Without any announcement during the IFA conference from India about urea purchases, industry watchers shifted their gaze to the new government.
The new head of the Chemicals and Fertilizers Ministry, Ananth Kumar, jumped right into his job by announcing that he was initiating steps to reopen all the closed urea plants in India. Local media reported that Kumar set a goal of making India urea self-sufficient during the term of the new government.
In the short-term, Kumar assured farmers that there would be no shortage of urea during the upcoming season. Weather predictions point to weaker rains this year because of the El Nino effect. Some of the delegates at the IFA conference, however, say their companies are expecting a regular monsoon season and strong urea demand.
When the next tender is called – most likely in mid-June – sources say India will not over-buy. The best bets at this time for the amount to be purchased is 1-1.2 million mt.
The big question for farmers is how the new government will deal with the subsidy issue. Media reports say that the new government is keen to cut back on subsidies for urea, either by wrapping it into the Nutrient-Based Subsidy plan or by slowly raising the set price of urea. Either step will affect how much urea farmers will be able to afford.
A producer at the IFA conference noted that the government has to move slowly on any urea pricing reforms. At the same time, he added, the government needs to increase its educational programs with farmers to wean them off urea and into using a more balanced nutrient regime. The reason farmers have not moved to other inputs, this producer said, is because the current subsidy program encourages the use of urea instead of other non-subsidized fertilizers.
Athens, Texas — A May 29 fire at a fertilizer storage building owned by East Texas Ag Supply caused no injuries, but authorities evacuated a five-block area of Athens, Texas, as a precaution due to the presence of ammonium nitrate in the structure. The fire was first reported at around 5:45 p.m. in the wood and cinder block building, and authorities quickly enforced the evacuation. Firefighters did not approach the fire or attempt to put it out, instead allowing it to burn itself out by about 7:30 p.m. There were no employees in the building at the time of the fire, and authorities were uncertain how much ammonium nitrate was stored in the structure or what sparked the blaze. The fire did not cause an explosion, but fears of a possible blast similar to the one that occurred last year in West, Texas, caused many Athens businesses to self-evacuate even outside the cordoned-off area. News reports said Trinity Community College closed its Athens campus about a mile south of the burning warehouse. Athens is located about 70 miles southeast of Dallas in Henderson County, and has a population of 12,000 people. The East Texas Ag Supply facility is located on a Union Pacific railroad line, about three blocks from the Henderson County Courthouse at the center of the Athens business district. The evacuation order remained in effect early Friday morning, May 30, affecting approximately 300-350 residents.
U.S. Gulf: The NOLA market held firm for the week, bolstered by reports of UAN continuing to move in the Midwest. Barges were quoted in a range of $275-$280/st ($8.59-$8.75) FOB on light volume, though some sources predicted the next round of business could dip as low as $270/st FOB.
The East Coast vessel price was static at $260-$270/mt CFR.
Eastern Cornbelt: UAN-28 remained in a broad range at $285-$310/st ($10.18-11.07/unit) FOB terminals in Ohio and Indiana, depending on location, with UAN-32 quoted at the $340/st ($10.63/unit) FOB level in the Illinois market.
Western Cornbelt: UAN-32 was steady at $340/st ($10.63/unit) FOB most regional terminals in the Western Cornbelt.
California: UAN pricing in California was down $10/st from last report. Sources pegged the market at $315-$330/st ($9.84-$10.31/unit) FOB coastal terminals in the state, depending on location and supplier, with delivered tons pegged at the $360/st ($11.25/unit) level, give or take. Some suppliers were reportedly sold out in late May, however.
“California is still going strong, with the sidedress season in full swing,” said one contact.
Pacific Northwest: The UAN-32 market was quoted in a broad range at $375-$395/st ($11.72-$12.34/unit) truck-DEL in the Pacific Northwest, depending on supplier and location. Sources said railed tons from the east could probably be had at lower numbers, but no one offered any concrete numbers because rail service remained far too sketchy.
“We can’t rely on rail service to receive deliveries,” said one contact. “Even with product already shipped, we are still experiencing an extra 30-65 day travel time after they have shipped. BNSF must be broken, they can’t get anything right.”
IRM’s UAN-32 postings firmed on May 13 to $395/st ($12.34/unit) DEL in eastern Oregon and Washington. Western Canada: UAN-28 remained at $445-$460/mt ($15.89-$16.43/unit) DEL in Western Canada, with the lower numbers reported in Manitoba and Saskatchewan.
U.S. Gulf: Most sources saw the NOLA market continuing in a range of $350-$355/st FOB, though a handful expected prices to drift into the $340s/st FOB in the near term.
Ammonium nitrate sales by truck were quoted at $400-$405/st FOB Tampa.
Western Cornbelt: The ammonium nitrate market was unchanged at $405-$415/st FOB in the Western Cornbelt.
California: No market was reported for agricultural grade ammonium nitrate in California.
CAN-17 was pegged at $325-$345/st FOB in the state, depending on location and supplier, with movement described as strong.
The AN-20 market was unchanged at $305-$310/st FOB and $315/st DEL in California. Pacific Northwest: No market was reported for agricultural grade ammonium nitrate in the region.
CAN-17 was quoted at $348/st FOB in the Pacific Northwest, up $5/st from last report.
Eastern Cornbelt: Granular ammonium sulfate was steady at $295-$310/st FOB in the Eastern Cornbelt. Ammonium thiosulfate was unchanged at $345-$350/st FOB.
Western Cornbelt: The granular ammonium sulfate market remained at $275-$300/st FOB in the Western Cornbelt, with the low in southern Missouri and the high in Iowa.
Ammonium thiosulfate was quoted at $315-$320/st FOB in the region.
California: Ammonium sulfate was quoted in a broad range at $245-$285/st FOB in California, with the low in Lathrop and the upper end FOB El Centro. Central Valley sources quoted rail-delivered tons at the $255/st level in late May.
Ammonium thiosulfate remained at $300/st FOB Stockton.
Pacific Northwest: Granular ammonium sulfate was steady at $265-$280/st FOB and $275-$285/st DEL in the region. Ammonium thiosulfate remained at $310-$330/st FOB in the Pacific Northwest.
Western Canada: Granular ammonium sulfate was unchanged at $475-$480/mt DEL in Western Canada.
The Mosaic Co. announced on May 29 that its president and CEO, James T. Prokopanko, is taking an anticipated medical leave of absence for surgery to treat his previously disclosed cancer (GM March 24, p. 10). The company’s board of directors has named Lawrence W. Stranghoener, 60, as interim CEO during Prokopanko’s absence, effective June 1, 2014. Stranghoener has served as Mosaic’s executive vice president and CFO since the company’s formation in 2004.
“It is in Mosaic’s best interest, and mine, that I focus on my health during the six- to eight-week period that my doctors tell me I should expect to be out of the office for surgery and recovery,” Prokopanko said. “This surgery has been part of the original plan laid out by my medical team and I am eager to take this next important step in my treatment. Larry is an outstanding leader who enjoys the deep respect of our employees and other stakeholders. I will make myself available to him and the rest of our management team, as needed, during my leave. I am looking forward to actively re-engaging in the day-to-day activities of the business once I have recovered from surgery.”
“The entire board continues to wish Jim the very best and is grateful for his thoughtful and open approach,” said Robert L. Lumpkins, chairman of Mosaic’s board of directors. “We have great confidence in Jim, Larry, and the rest of the talented management team. We are looking forward to Jim’s full-time return to Mosaic this summer.”
Mosaic also announced that Stranghoener intends to retire at the end of 2014, and that the board has named Richard L. Mack, 46, as executive vice president and CFO effective June 1, 2014. Upon Prokopanko’s return, Stranghoener will serve as executive vice president, Strategy and Business Development, until his retirement, as which time his business development and strategy responsibilities will be assumed by Mack.
Mack is currently serving as executive vice president, general counsel, and corporate secretary. He has served as Mosaic’s general counsel since the company’s launch in 2004. In the decade prior to Mosaic’s formation, he served in various capacities at Cargill Inc., where he played an instrumental role in the negotiations that created Mosaic and served as a founding executive of the company.
In addition to his general counsel responsibilities, Mosaic said Mack provides oversight of the company’s phosphate mine permitting and land activities, heads Mosaic’s enterprise risk management initiatives, serves on the board of directors of Ma’aden Wa’ad Al Shamal Phosphate Company, and envisioned and leads Streamsong Resort. He holds a BS in accounting from Minnesota State University-Moorhead, a Juris Doctor from Hamline University School of Law, and an MBA from the Kellogg School of Management at Northwestern University.
“I am very proud of the exceptional team and business we have built over the past decade at Mosaic, and appreciate Jim’s and the board’s confidence in me,” said Stranghoener. “Rich will be an excellent CFO for this company. He is a gifted strategic thinker, has been an exceptional partner on virtually every important finance matter impacting Mosaic over the past 10 years, and has a proven talent for getting things done. I am honored to step in until Jim’s return. I look forward to supporting Rich’s transition into his new role and then enjoying the opportunity to spend more time with my family and pursuing my other passions during retirement.”
“Larry is leaving very big shoes to fill,” said Mack. “His leadership has been integral to every meaningful step Mosaic has taken – from our newly-formed, non-investment grade days to the fully-independent, high-performing company
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