EPA supports myRMP

Washington-The U.S. Environmental Protection Agency on Aug. 14 notified The Fertilizer Institute (TFI) of its support for the Web-based myRMP program, developed cooperatively by TFI and the Asmark Institute to help agricultural retailers conduct required updates to risk management plans. EPA is recommending that retailers nationwide use myRMP. The program was launched Aug. 13 and is available for use by retailers across the country. “TFI has been a leader in retail RMP compliance assistance since EPA announced its rule, and we published a retail guidance document in 1998,” said TFI President Ford West. “We’ve had a nine-year track record on work on this rule and are pleased that EPA has recognized our industry’s work. The guidance will work to provide for more uniformity and consistency across the different regions of EPA.” myRMP was developed and launched in a Web-based format in the spring of 2006, with a special emphasis on education and personalizing the experience and materials to a specific facility. The program came as a result of EPA’s rule regarding the accident prevention provisions on the Clean Air Act of 1996, which requires facilities that handle anhydrous and aqua ammonia in threshold quantities to prepare a risk management plan (RMP). This plan consists of three major components: a hazard assessment, a prevention program, and an emergency response program in the event of a “worst case scenario” release of either product. “This new version of myRMP is very user-friendly and literally puts everything a retailer needs to effectively implement a RMP accident prevention program at their fingertips, all in one convenient suite,” said Asmark Institute President Allen Summers. “New technology was applied to further enhance several aspects of the new guidance tool, including the ability to personalize materials such as the written operating procedures.” EPA required a summary RMP to be submitted by June 21, 1999. A complete review and update is required every five years or whenever certain changes in the facility operation occur. The next five-year update will occur in June 2009, at which time it is expected that practically every retailer in the United States will access the new myRMP guidance for assistance with EPA’s requirements. There are approximately 14,000 RMP facilities in the United States, of which roughly 3,500 are considered to be agricultural retailers. EPA awarded Asmark a grant to make the necessary changes to myRMP to make it available to retailers nationwide. myRMP can be accessed via TFI’s Web site atwww.tfi.org and EPA’s Web site in the coming days.

The Week in Fertilizer Stocks

Company Symbol Price Week Ago Year Ago
Producer
Agrium AGU 36.60 39.93 23.65
CF Industries CF 53.03 48.90 15.47
Mosaic MOS 35.22 37.51 16.30
PotashCorp POT 75.32 83.45 32.81
Terra Industries TRA 20.93 19.22 6.39
Terra Nitrogen TNH 73.82 77.97 19.95
Distribution/Retail
Andersons Inc. ANDE 44.45 50.73 35.63
Deere & Co. DE 120.53 120.10 71.84
Scotts SMG 44.23 48.93 39.19
UAP UAPH 29.26 31.72 20.15

Market Watch

AMMONIA

U.S. Gulf/Tampa: The ammonia markets remained relatively quiet last week, though there is contention over the next round of imports. Sellers, citing a turnaround in Black Sea pricing, believe Tampa buyers will have to pay more than the last done $295/mt DEL in the next round of trading.

Anhydrous ammonia imports were down only 1 percent for the fertilizer year ended June 30, to 8.36 million st, according to the DOC, versus the year-ago 8.43 million st. Imports in June helped narrow the gap as they were up 32 percent for the month, to 886,530 st from the year-ago 671,592 st.

Eastern Cornbelt: Anhydrous ammonia remained at $470-$475/st FOB, with the low end out of spot river locations and the upper numbers inland in northern Illinois. Forward contract ammonia for September through December was at $490-$500/st FOB regional terminals.

Western Cornbelt: The ammonia spot market continued at $455-$475/st FOB at regional terminals to the dealer, with the low reported in Nebraska. Forward contract ammonia for September through December was said to be at $475/st FOB in Nebraska, $485/st in Iowa, and $490/st FOB Palmyra, Mo.

California: Anhydrous ammonia pricing was lower than at last report at $415/st truck-DEL and $435/st rail-DEL in the state.

Pacific Northwest: Anhydrous ammonia pricing was quoted at $420/st FOB on the low end, with one supplier referencing the $440/st mark FOB Washington terminals for August. On a delivered basis, sources quoted the market at $435-$460/st in the region, depending on carrier and location.

Agrium has not reposted anhydrous ammonia since July 9, which was at $440/st rail-DEL in most of Washington, Oregon, and northern Idaho; $460/st truck-DEL in Oregon and Washington east of the Cascades, and in Idaho north of and including Idaho County; and $475/st truck-DEL in Montana and northern Wyoming. Also, Agrium’s aqua ammonia postings moved to $115/st FOB Central Ferry and Finley, Wash.

Western Canada: Anhydrous ammonia was quoted at $621-$666/mt DEL in the region, following a downward price adjustment on July 17.

Black Sea: The August lineup at Yuzhnyy is reportedly full. Sources say the facilities will ship out about 270,000 mt this month. The full shipping schedule means higher prices. When this month opened, the price was hovering in the mid-$240s/mt FOB. By the beginning of last week, $250/mt FOB was achieved – reportedly by Yara – and now buyers and sellers are looking at the mid-$250s/mt FOB. Sources say producers are now asking $260/mt FOB, and buyers are resisting. Asian sources say the price is hovering at $250/mt FOB, with buyers facing a losing game. Observers from the area peg the market at $250-$255/mt FOB late last week, with $260/mt FOB pegged to open this week.

Middle East: Sources are scrambling to figure out what happened in the FACT/India tender. It seems Sabic offered material at $262/mt CFR. Sources estimate the netback into the mid-$230s/mt FOB. Other offers from Qafco and Transammonia showed prices ranging from $250-$270/mt FOB.

The apparent reason for the unusually low Sabic price, say sources, was a growing supply of unsold ammonia in the Sabic tanks. One observer noted that Sabic and TFC/Taiwan took a little longer than expected in concluding their deal for last semester deliveries. Another possibility is that Sabic was willing to sell the two lots of 7,500 mt at low prices just to reduce its stockpile so the producer could raise its price to other buyers. Sources say this has been done in the past, and given the apparent upward tick in prices from Yuzhnyy, might be part of an effort by Sabic to get the Middle East price out of its doldrums.

Sources report that IPCC in Iran may soon be offering tons for export.

Until new tender business is nailed down, sources now put the market at $235-$250/mt FOB.

India: FACT closed a tender for two lots of 7,500 mt last week. As Green Markets went to press no award was made, but sources in Asia expect to see Sabic come out the winner with its low offer of $262/mt CFR. The first lot is to be delivered Sept. 1-5 and the second Sept. 20-26.

Offers follow:

Company Source Quantity (mt) US$/mt CFR
SABIC Saudi Arabia 2 x 7,500 262.00
QAFCO Qatar 2 x 7,500 280.00
Transammonia Open 7,500 294.00
7,500 290.00

Additional purchases by India are expected in the near future. Sources report that DAP producers are expected to pick up their ammonia buying. One source noted India is behind schedule in its annual ammonia purchases at this time and may try to make up for lost time with some strong purchases to come.

Reportedly, Fertil is shipping 22,000 mt to India for late August and early September arrivals.

Indonesia: Kaltim offered tons for sale, but got no takers. Asian sources report the supply and demand balance in the area was stable enough that buyers were looking for bargains while Kaltim was looking for some extra cash. Chances are, said one observer, Kaltim will be able to hold onto the ammonia and issue another selling tender later this month that might get some more interest.

UREA

U.S. Gulf: Granular barge prices shot up last week, with sources saying they started the week within the $305-$308/st FOB range, while late week trading was called $318-$320/st FOB for prompt cargoes. CF was reportedly now posting $325/st FOB for September business.

The price spurt was quite a change from the Southwestern Conference, which some buyers began by asking how low prices would fall. Those buyers had a short wait. Now the question may be how high will they go.

Why the uptick? Buyers, said most sources last week. They came into the market and started snapping up product. Sources explained that a few weeks ago buyers put forth the fear that ships of Chinese material were on their way to NOLA and that this would crater the market. However, the calendar is getting close to September and those ships have not arrived, with no firm assurance that they will. In fact, sources reported last week that ConAgra, which has that Chinese urea, was in the NOLA market buying barges. In the meantime, there were reports circulating that one Sabic vessel was going to be late getting to NOLA; however, indications are that the vessel, which is due in three weeks, was only off schedule by a few days.

U.S. urea imports were off 7 percent for the year ending June 30, to 6.256 million st from the prior year’s 6.741 million st. This past June was a big month for imports, however, seeing a 99 percent increase to 252,721 st, up from the year ago 127,190 st.

Eastern Cornbelt: Granular urea continued at $350-$360/st FOB regional terminals to the dealer, but prices were firming on the wholesale market.

Western Cornbelt: Granular urea was unchanged at $350-$360/st FOB, with the low out of spot river terminals and the upper numbers out of inland locations in Nebraska.

California: Granular urea was unchanged at $380-$400/st FOB and $390-$410/st DEL.

Pacific Northwest: Granular urea was $390-$400/st DEL in most of the region, and roughly $360-$365/st DEL to points in Montana. Agrium’s granular urea postings on July 9 firmed to $370-$385/st DEL in Montana and Wyoming, depending on location; $395/st FOB Washington warehouses at Glade, Kennewick, Warden, and Wilson; $400/st DEL in Washington, Idaho, Oregon, and northern Nevada from plants and/or warehouses in Alberta and Oregon; $410/st DEL in northern and central Utah; and $415/st DEL in southern Utah.

Western Canada: Granular urea pricing remained at $450-$475/mt DEL after falling from the previous $475-$500/mt.

Black Sea: With rumors of another round of Indian purchases getting stronger and Latin American buyers coming back into the market, producers are pushing for higher prices – and apparently, some traders are taking the bait. Reportedly, the new asking price is $265/mt FOB, with business already concluded in the upper $250s/mt FOB.

For now, say Asian sources, the Yuzhnyy market is being driven by traders taking long positions in anticipation of an Indian tender sometime later this month or early September.

Sources are adamant that $260/mt FOB was not achieved as last week ended. Whether it will go to the levels desired by the producers will depend on how many more tons the Brazilians are serious about taking and how soon India will come back in for tons.

For now, say sources, the market is pegged at $255-$260/mt FOB.

Middle East: Iran just bought 30,000 mt of granular at $270/mt FOB. Given that the Middle East suppliers usually add a premium of a couple of dollars to any sale to Iran, sources say the market has not moved.

Producers are claiming higher prices will be achieved soon because of growing demand from the U.S. and the potential of an Indian tender. The U.S. purchases will move the granular market, and the Indian business – if it materializes – will draw on whatever material is available.

Until a new public tender is called and the Middle East suppliers win an award, sources say the market has not moved off the price ranges previously expressed. Some have said the low end – $265-$270/mt FOB – may no longer be as readily available. Others are not so sure, and say deals can still be quietly made sub-$270/mt FOB.

The market for granular and prills remains at parity at $265-$275/mt FOB.

India: The industry continues to wait to see what IPL and MMTC will do later this month. The expectation is that another tender will be called by each of the buying houses to round off the 2007 buying season. The tender call could come soon – or not until the middle of September.

China: Sources report Chinese producers are trying to ride the crest of the Yuzhnyy market. Suppliers have stopped talking to anyone offering below $245/mt FOB bagged at the port. Buyers are still looking at Oct. 1 for cheaper tons, but producers seem intent on keeping the selling price up.

After Oct. 1, the export duty is slated to drop from 30 percent to 15 percent. Producers are hoping to hold or increase the price so that after Oct. 1 some of the money that is currently going to the government coffers will go to their accounts instead.

Bangladesh: Urea production suffered at the Ghorasal Urea Fertilizer Factory Ltd. (GUFFL), a unit of BCIC, after an ammonia compressor caught fire. The factory had to close down for an indefinite period on Aug. 12. The extent of loss could not be immediately ascertained, but local media estimated it in millions of dollars. According to officials of BCIC, the fire broke out at the ammonia power compressor. The factory has a daily production of 1,200 mt of urea.

NITROGEN SOLUTIONS

U.S. Gulf: With surging urea barge prices, sources said UAN price ideas have moved back up into the $260s/st FOB.

UAN imports saw a big increase in June – up 140 percent, to 237,184 st from the year-ago 98,819 st. Imports were down 10 percent for the year ending in June, to 2.56 million st from 2.84 million st.

Eastern Cornbelt: UAN-32 was still in very tight supply at $295-$305/st ($9.22-$9.53/unit) regional terminals to the dealer. Forward contract tons for September-December continued to be referenced in the $297.80-$312.20/st ($9.31-$9.76/unit) FOB range from a regional supplier.

Western Cornbelt: The UAN-32 market continued to be firm in the $290-$300/st ($9.06-$9.38/unit) range FOB regional river terminals, and in tight supply.

California: The UAN-32 market was firm at $300-$310/st ($9.38-$9.69/unit) FOB and $320-$330/st ($10.00-$10.31/unit) DEL in the state.

Pacific Northwest: UAN-32 was priced at $310-$325/st ($9.69-$10.16/unit) DEL in the region, and in very tight supply. Effective Aug. 1, Agrium’s UAN-32 postings moved to $315/st ($9.84/unit) DEL in Washington, Oregon, and northern Idaho, and $345/st ($10.78/unit) DEL Montana and northern Wyoming. UAN-28 postings in Montana and northern Wyoming moved to $302/st ($10.79/unit).

Western Canada: UAN-28 remained at $289-$304/mt ($10.32-$10.86/unit) DEL in the region.

AMMONIUM NITRATE

U.S. Gulf: No changes were reported on the barge market, with players calling the market $265-$268/st FOB.

Imports were off 24 percent for the year ending June 30, to 1.08 million st from the prior year 1.43 million st. June imports were also off 24 percent, to 40,225 st from 53,049 st.

Western Cornbelt: Ammonium nitrate was firm at $315-$325/st FOB based on the most recent sales.

Pacific Northwest: Ammonium nitrate was steady at $327-$335/st DEL in the region. CAN-17 remained at $222-$227/st FOB and $232/st rail-DEL.

AMMONIUM SULFATE

Eastern Cornbelt: Granular ammonium sulfate continued in a broad range at $210-$240/st FOB, but supplies were very tight and new sales limited.

Western Cornbelt: Granular ammonium sulfate remained at $210-$240/st FOB and in tight supply. Agrium issued a price list effective Sept. 22 for North Dakota, South Dakota, Minnesota, Nebraska, and Wisconsin at $225/st DEL.

California: Granular ammonium sulfate remained at $210-$230/st FOB, depending on location, with reports of tight supply.

Pacific Northwest: Granular ammonium sulfate was up about $10/st FOB at $225-$235/st DEL in the region, with supplies described as tight.

Western Canada: Granular ammonium sulfate pricing was pegged at $305-$315/mt DEL in the region, after a $10/mt increase on Aug. 7

U.S. Imports: Imports were up 16 percent for the year ending June 30, to 402,212 st from the prior year 346,956 st. June imports were up 27 percent, to 23,313 st from 18,382 st.

PHOSPHATE

Central Florida: A rumor circulating last week held that prices may be going up on Sept. 1. Specifically, a source said CF may be raising its Central Florida DAP price by $3/st FOB to $385/st FOB, which would match Mosaic’s current list price and PotashCorp’s Central Florida reference price.

Prompt sales continued at a trickle in Central Florida last week, but sales were made for the upcoming December-to-March period by both Mosaic and CF. Mosaic’s sales were made at the current $385/st FOB price. A source said he had been contacted by a Canadian buyer, who told him he had been able to purchase DAP for that period at $380/st FOB, although that report could not be confirmed. However, it was surprising that sales were made that far into the future, which was an indication of the strength of the market. Producers said inquiries for the fall season were stronger last week.

In July, 625,000 mt of DAP and MAP were sold in the North American market, according to TFI’s latest report, and sales were expected to be strong in both August and September as well. Considering the large book of business PhosChem has already placed for India and other offshore buyers and the strong world market, inventories will remain low and will be extremely low by the end of the fall season. Prices were not likely to take a tumble anytime soon.

Last week, the DAP price range remained at $382-$385/st FOB. Mosaic’s asking price was $385/st FOB for DAP and $381/st FOB for MAP. CF was listing a price of $382/st FOB for prompt DAP and MAP; however, CF rarely makes sales to the dealer level. PotashCorp’s Central Florida reference price remained at $385/st FOB. In Texas, Agrifos was asking $410-$415/st FOB for truck sales and $410/st FOB for railcars, but was sold out through the end of September for rail-delivered phosphates.

U.S. Gulf: Slowdowns continued to be a problem on the Arkansas River north of Muskogee last week as a result of heavy buildup of silt after the Corps of Engineers opened dams to relieve high water and prevent flooding. In conjunction with Catoosa and Inola, which are north of Lock 17 at Muskogee, an excavator was sent south and cleared a narrow, 60-foot wide channel in the river. As a result, three barges in single file at the same time can move northward to those ports and terminals. However, the contents of each barge will virtually vanish soon after arrival. Normally, the season in that area kicks into high gear about August 15, and many of the terminals could run dry of products. The Corps was bringing a large dredging machine from Little Rock, but it will be another two to three weeks before the river returns to normal navigation. The trip from Rosedale to Muskogee takes approximately six days, and there were reports of a backlog of barges at Rosedale.

How phosphate sales will fare in Oklahoma was still a big question mark last week. Some dealers believed the demand will be great, but some of the traders were taking a more cautious position. The problem was the disastrous wheat crop – much of which rotted in the fields – and the uncertainty as to what farmers will do.

Last week, phosphate sales on the river system were extremely quiet. Some who did not buy said they believed they could obtain barges at Rosedale for as low as $398/st FOB due to some owners seeking to avoid high fleeting costs. However, no sales were made at that price or lower.

Based on actual sales last week, the NOLA DAP barge price range was $401-$403/st FOB, which was the same as the previous week’s range. Mosaic’s asking price was $405/st FOB; sales were made at the $403/st FOB level.

Eastern Cornbelt: DAP and MAP remained at the $430- $435/st FOB range for regional warehouses, with the low out of spot river locations and the higher numbers inland. 10-34-0 remained at $335-$350/st FOB regional shipping points to the dealer.

Western Cornbelt: DAP continued at $430-$435/st FOB regional warehouses, while MAP was running $430-$432/st FOB. Sources said the 10-34-0 market was at $345-$350/st FOB.

California: Super phosphoric acid pricing remained firm at $7.00/unit DEL in the state, with merchant grade at $6.90-$7.00/unit DEL. A nickel/unit increase for both products is expected this month, and again in September.

Sources said MAP was up $5/st FOB or DEL in August, to $450-$455/st FOB or DEL from $445-$450/st FOB or DEL in California, with DAP roughly $5-$7/st higher. 16-20-0 remained at $295-$300/st FOB or DEL. The 10-34-0 market remained at $310-$320/st FOB in the state, but a slight increase is likely in August due to higher phosphoric acid prices.

Pacific Northwest: Phosphoric acid pricing was firm at $7.00/unit DEL for both super phosphoric acid and merchant grade acid. A nickel/unit increase is scheduled for August, and again in September.

DAP remained firm at $442-$452/st FOB or DEL in the region, with the low in Montana. Sources said a $5/st increase was scheduled for mid-August, followed by a $10/st increase in mid-September. The same was true of MAP; sources tagged the market at $435-$445/st DEL in the region last week, depending on location, with increases slated for Aug. 16 and again on Sept. 16.

MAP postings from Agrium, effective Aug. 16, included $440/st DEL in Montana, $445/st DEL in southern Idaho and Utah, and $450/st DEL in Washington, Oregon, and northern Idaho. A $10/st increase is scheduled for all locations on Sept. 16. The company’s MAP postings FOB the warehouse in Washington, northern Idaho, and Oregon moved to $445/st on Aug. 16 and up $10/st FOB to $455/st on Sept. 16.

16-20-0 was firm at $300-$305/st DEL in the region, with a $2-$3/st increase scheduled for Aug. 16. Sources said the market will firm to $308-$313/st DEL on Sept. 16.

10-34-0 continued at $315-$325/st FOB in the region.

U.S. Export: Last week, PhosChem made a sale of 7,000 mt of DAP into Central America at $433/mt FOB, which was an increase of $3/mt FOB, despite the fact freight rates began to climb again last week.

Also last week, Pakistan was said to have purchased between 100,000 and 150,000 mt of DAP from China, Russia, and Australia at a price of $520/mt DEL. In addition, India issued a tender for another 150,000 mt of DAP, but it was unlikely PhosChem will make a bid as inventories were already too low.

TFI issued its export report for July. It was no big surprise that India was the biggest DAP customer, receiving 232,492 mt, with Japan a distant second at 34,932 mt, and Chile with 20,634 mt. For the month, total DAP exports amounted to 384,023 mt, a reduction of 33.6 percent from the same month last year. For the calendar year-to-date, India was still on top at 475,039 mt, with China next at 291,695 mt, and Mexico close behind at 273,166 mt. The total for the calendar year-to-date was 2,300,283 mt, which was 31 percent less than the same period a year ago.

Argentina was the biggest buyer of MAP in July, with 48,836 mt, and Japan was second at 10,337 mt. The total MAP exports for July were 106,454 mt, a decline of 57.7 percent from the same period a year earlier. For the calendar year-to-date, Canada has been the biggest customer for MAP with 423,157 mt; Argentina was next at 167,027 mt, and Brazil was the third biggest buyer at 163,567 mt. Total MAP exports for the calendar year-to-date were 1,257,294 mt, which was a 0.9 percent reduction from the same time in 2006.

Based on the most recent sales, the export DAP price range last week narrowed from $420-$430/mt FOB to $430-$433/mt FOB. Ocean freight rates will continue to affect FOB prices.

U.S. Imports: Phosphate rock imports were up 19 percent for the year ending June 30, to 2.05 million st from the prior year 1.73 million st. June imports were up 133 percent to 247,142 st from the year-ago 105,972 st.

POTASH

Eastern Cornbelt: Potash was firm at $250-$255/st FOB from the previous $245-$250/st FOB regional warehouses for limited spot tons, depending on grade and location. Indications were that potash prices will continue to rise into the fall season. However, many large dealers have already filled their bins.

Western Cornbelt: Potash pricing increased from $250-$260/st FOB the warehouse to $262-$265/st FOB, depending on grade and location, and additional supplies may not be available until the fall. Potash prices were likely to see additional increases.

California: Potash was quoted at a firm $255-$275/st FOB in the state, depending on grade. Potassium nitrate pricing firmed $20/st on July 11 to $500/st FOB for bulk and $560/st FOB for bags. Sulfate of potash (SOP) pricing was unchanged at $368-$378/st FOB in the state.

Pacific Northwest: Potash continued to be extremely tight. Rail-delivered potash was pegged at a firm $266-$277/st in the region, with the low for 60 percent and the high for 62 percent muriate. Sources said a $20/st increase is scheduled for Oct. 1.

Western Canada: Potash pricing continued to firm. Sources tagged the regional market at $280-$295/mt FOB regional plant sites or warehouses, and $280/mt FOB from the mine.

U.S. Imports: Potassium muriate imports were up 14 percent for the year ending June 30, to 11.2 million st, up from the prior year 9.83 million st. June imports were up a whopping 44 percent, to 855,819 st from 593,742 st.

Bangladesh: BADC has issued a tender to import 50,000 mt MOP in bags in a maximum of four lots on CFR (C) Chittagong or CFR (C) Mongla Port. The minimum offer is 12,500 mt. Offers are to be received up to Sept. 19, instead of Aug. 28, which was announced earlier.

SULFUR

Tampa: Late last week, five of Valero’s refineries – Port Arthur, St. Charles, Houston, Texas City, and Corpus Cristi – were either on turnarounds or were having problems that affected sulfur production. The amount of the combined loss of production was not available, but it will add to the already tight market. Sulfur producers and suppliers were having problems meeting amounts required by their contracts, and the situation did not look promising last week. So far, phosphate production has not been affected, but that could change if the situation worsens.

On the positive side, Hurricane Dean appeared to be taking a southerly tract, which should keep shipping lanes open in the Gulf of Mexico. However, August looks to be a robust month for the formation of storms off the coast of Africa, and the eyes of the industry will continue to watch the situation carefully.

Prill vessels out of the Gulf Coast were bringing healthy prices for shipments to Brazil, with prices confirmed in the $100/mt range. Sulfur on the world market continues to be extremely tight.

West Coast: Pricing for agricultural, industrial, and domestic liquid sulfur on the West Coast was said to be causing problems for suppliers there, who would like to keep that book of business. Those customers pay considerably less than sulfur for overseas sales as prill, and were threatening to discontinue purchasing. Conoco was said to have set a price for those customers at $18/t in order to keep the business, and Chevron was considering a similar move. The impact on the West Coast sulfur price index was not clear last week.

U.S. Imports: Imports were off 31 percent for the year ending June 30, to 1.53 million st from the prior year 2.2 million st. June imports were off 23 percent, to 124,529 st from 162,575 st.

Vancouver: Last week, China was said to be offering to purchase sulfur for between $220-$240/mt DEL, which would net an FOB price from Vancouver of $180-$200/mt. However, suppliers in Vancouver were already having difficulty meeting their obligations under existing contracts and had not taken advantage of the high-priced offers. Still, China was said to be building its inventory of sulfur, which may lead to an easing of the pressure on the world market – at least at some point.

MARKET NOTES

Warsaw: Polish nitrogen and phosphate production are reported to be up 11 and 10 percent respectively for the first half of 2007. As a result of a booming market, the government has inked a new contract with Saudi Arabia for the import of oil and gas. Poland is planning to build a new LNG terminal at Swinoujscie near the German border.

Management Briefs

Agrotain International LLC has appointed Ben Thompson as industrial sales manager. He initially joined the company in October 2006 as the Florida Agriculture sales manager, and will continue those efforts along with industrial sales. In his new role, he will manage existing industrial accounts and seek out new industrial opportunities. He has 25 years experience in fertilizer sales and marketing, with three years focused on industrial fertilizer sales. He can be reached at 651-322-7010 (office) 561-376-4571 (mobile), or at bthompson@agrotain.com.


Jim Bellar received the Florida Fertilizer & Agrichemical Association’s Lifetime Achievement Award during FFAA’s 75th annual meeting in Naples in July. FFAA said Bellar, an Indiana native, worked in Florida’s agricultural industries for 36 years before retiring last month from Florida Favorite Fertilizer and Potash Corp. of Saskatchewan Inc. FFAA noted that Bellar was the organization’s board chairman in 1998-99 and oversaw the association during a year when staff turned over 100 percent; he is credited with smoothly steering FFAA through that transition.

In other news, FFAA elected Brent Sutton to serve a one-year term as chairman. He is president and general manager for Lake Alfred-based Growers Fertilizer Corp. Gaylon Pfeiffer, a business representative for BASF Corp., was elected vice chairman. Justin Bunch, general manager-Florida Division for Crop Production Services, was named secretary/treasurer.

Itronics benefiting from fertilizer surge

Reno, Nev.-Just like the major players, little Itronics Inc., which produces liquid fertilizer from chemicals recovered from photographic wastes, is enjoying higher demand for its product. Still, not a lot of it can be attributed to the rush to grow more corn – at least not for the time being. Energized by a 52 percent increase in revenues and a 74 percent increase in fertilizer sales in the first quarter of 2007 compared to the same period in 2006, Reno-based Itronics is forecasting that demand for GOLD’n GRO will double this year, and for the first time since launching into this business is starting to show a profit. California, where it is used on cotton, silage corn, alfalfa, orchards, and vineyards, remains Itronics’ largest market, but the company is also expecting another lift from preliminary results from tests at Utah State University that found GOLD’n GRO improved crop growth. Still, the company will have to wait while field tests are conducted and the appropriate fertilizer registrations are approved in Cornbelt states before even getting its foot in the door. Meanwhile, Itronics has acquired two substantial photoservices customers that are expected to significantly expand used photochemical supplies to support on-going growth in GOLD’n GRO fertilizer sales in 2007. During the year the company also obtained an additional $2 million in financing.

Virginia county restricting biosolids use

Bedford, Va.-Agribusiness interests have no problem with Bedford County’s plans to restrict biosolids application based on a model ordinance developed by the Virginia Association of Counties along the lines of recent state changes approved by the legislature. “The ordinance was developed to be consistent with state law and regulations,” according to the Virginia Agri-Business Association’s Katie Kyger Frazier. “It gives Bedford County authority to work in conjunction with state officials to ensure that biosolids applications are consistent with state regulations by hiring a local biosolids monitor to test and monitor the application of biosolids within the county. We believe that the model ordinance is a tool for localities to use when considering biosolids ordinances, and that provisions of the law and regulations ensure that biosolids are applied in a safe and reasonable manner while still allowing farmers and foresters in the locality to have access to this important soil amendment.” A second part of the Bedford ordinance that gives localities the authority to either require special use permits or, as part of their zoning ordinance, reasonably restrict the storage of sewage sludge for health, safety, and environmental reasons, is still under study. “The storage ordinance is still being reviewed by attorneys, so I cannot speak to its merits,” Frazier noted. County Administrator Kathleen Guzi directed the ordinance, which was recommended by the county’s new agricultural economic development advisory board to be ready for a final vote later this month. She said storage restrictions must meet requirements of the recent state legislation. District 1 Supervisor Dale Wheeler raised the only objection, saying if he were a lobbyist for the sludge industry he would have written the same ordinance.

Study finds nitrogen can benefit forests

Corvallis, Ore.-A study has found that nitrogen from agriculture and other sources in small amounts actually helps forests by increasing the growth of trees and boosting the amount of carbon dioxide they absorb and store. But there’s a limit, according to Beverly Law, a professor of forest science at Oregon State University and one of the researchers, who warned that too much nitrogen can lead to other nutrient and acidity problems. “People expect that if a little is good, a lot is better – but that’s not the case,” remarked Law. “We’re trying to figure out how much carbon these forests are taking up now to offset greenhouse gases and how much they will take up in the future.” Law stressed that the level of nitrogen that can be beneficial amounts to about 10 percent, or 10 kg per hectare. The researchers measured how much carbon was being absorbed and sequestered, or taken out of the atmosphere and locked up, in the growing plants in forests in North America and Europe. They also monitored how much nitrogen was being deposited in those forests by automobile engines, factories, and intensive agriculture. One of ways nitrogen benefits is as a plant fertilizer, and it appears to have this effect in forests in this study. Higher nitrogen deposition rates were found to cause loss of other nutrients like calcium on the West Coast and increase acid content in soils in the eastern U.S. The study findings have been published in the journal Nature.

Algae water carpet produces organic compost

Ocala, Fla.-An algae carpet that is being put to work to clean phosphate and other fertilizer from an important waterway produces at the same time a high grade organic compost that could have a wide variety of uses on farms, in nurseries and home gardens, and in municipal parks and playgrounds. “Water quality officials are interested in getting growers to substitute the compost for commercial fertilizer being brought into critical watershed areas in the state,” according to Margaret Palmer, president of developer HydroMentia, which is demonstrating how the unique system can keep nutrients from flowing into Lake Okeechobee, one of the state’s most important water sources. With the Taylor Creek Algal Turf Scrubber, Palmer explained, the algae attaches itself to a 3 ½-acre heavy plastic liner as water is distributed in a thin flow across the membrane. The plants, which are the fastest growing in the aquatic family, take up the nutrients as they precipitate on the cells. The algae, containing nitrogen, phosphate, and a small amount of potash (approximately 2-1-1/2), is harvested every 7 to 21 days with a specially-designed rake and deposited on a concrete pad. “We haven’t accumulated sufficient amounts as yet to evaluate all the potential uses,” Palmer reported. She said several farmers already have indicated an interest. The technology was originated by a Smithsonian marine biologist, and HydroMentia expects to see large-scale water treatment applications as the demand continues to grow.

Applicators face fine for using phosphate

West Milford, N.J.-The West Milford Town Council thinks the path to less phosphate getting into the area waterways leads to the fertilizer applicators. That’s why licenses to apply any fertilizer are being required of applicators, and spreading of phosphate is being banned with some exceptions. According to a town notice, copies of the ordinance and license applications have been mailed to area landscapers, who were put on notice that any business found to be operating without a license will be subject to penalties including a fine up to $2,000. Ken Hawkswell, the town’s health director, told Green Markets the ordinance was recommended by the environmental commission. “It’s difficult to regulate homeowners,” Hawkswell said. “So we are regulating commercial fertilizer applicators (and) it’s too early to evaluate any benefits.”

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