Melbourne-BHP Billiton said last week as it released first-half earnings that the company incurred expenses of some $314 million in its failed takeover attempt of PotashCorp in 2010. However, the expense did not put much of a dent in overall BHP results, as profit attributable to the members of the BHP Billiton Group were up 71.5 percent for the first half ending Dec. 31, 2010, to US$10.5 billion on sales of $34.2 billion.
| Spot Barge Prices | st/FOB U.S. Gulf |
| Ammonia | 420 |
| Urea (g) | 373-383 |
| Urea (p) | 390-400 |
| DAP | 552-560 |
| Week | Year | |||
| Producer | Symbol | Price | Ago | Ago |
| Agrium | AGU | 97.05 | 96.54 | 66.14 |
| CF Industries | CF | 147.81 | 150.37 | 104.65 |
| Intrepid Potash | IPI | 39.37 | 38.32 | 28.14 |
| Mosaic | MOS | 86.75 | 85.92 | 61.26 |
| PotashCorp | POT | 186.25 | 185.02 | 114.03 |
| Terra Nitrogen | TNH | 122.51 | 115.91 | 101.63 |
| Distribution/Retail | ||||
| Andersons Inc. | ANDE | 48.81 | 45.60 | 32.71 |
| Deere & Co. | DE | 95.26 | 94.52 | 56.48 |
| Scotts | SMG | 53.04 | 53.05 | 38.71 |
U.S. Gulf/Tampa: While some said it was too early last week to even talk about Tampa ammonia prices for March, others were not so reluctant, wondering if the ammonia market still has enough steam for another increase on top of the one seen for February. Last month some sellers were very bullish, saying the market could have gone higher to $525-$550/mt, instead of $515/mt for February ?Çô which was still up $40/mt over January.
December ammonia imports were up 59 percent, according to the U.S. Department of Commerce, to 674,420 st from the year-ago 423,840 st. July-December imports were up 24 percent, to 3.9 million st from 3.14 million st.
Eastern Cornbelt: Anhydrous ammonia pricing remained at $675-$680/st FOB Illinois terminals, with the upper end of the range pegged at the $690/st FOB level in Indiana.
Western Cornbelt: The anhydrous ammonia market remained at $630-$670/st FOB regional terminals, depending on location and time of delivery.
There were no field activities reported in the region in mid-February, but sources said fertilizer tons were moving to storage in advance of the spring planting season. “I think we’re setting up for the same mess we had last fall,” said one contact, who recalled supply outages during the heavy fall application season, but also a continued reluctance on the part of farmers and dealers to position tons. “We’re all doing business different than we were two or three years ago. There was a lot done last fall, but there’s a lot to do this spring, too.”
Other contacts, by contrast, said buying interest had heated up in recent weeks, not only for the spring but also for summer and fall tons.
Northern Plains: North Dakota sources quoted delivered ammonia in the $715-$720/st range for limited tons, with postings as high as $760/st DEL from some suppliers. Out of regional terminals, the ammonia market was quoted in the $670-$680/st FOB range, depending on location and time of delivery.
Middle East: Without any spot sales to firmly place the current market, sources say the public prices remain pretty stable in the mid-$450s/mt FOB.
One producer noted that earlier deals at $450/mt FOB are gone, but nothing new has happened to move up the price. An Asian trader agreed with this assessment.
The price range has tightened. Sources say the range is now $455-$458/mt FOB.
The Arab producers continue to move out material at a brisk pace. None seem to be concerned about a softer market.
Demand from Asia remains a strong pulling force on the supplies.
Normally the Arab producers would also count on steady buying from India. Lately, however, India has been taking significant quantities of tons from Iran.
Nailing down exactly how many tons are flowing from Iran to India is difficult, said one trader. He did point out however, that Iranian material is not being pushed to other markets as aggressively as in the past.
One producer representative noted that last year he would often run up against Iranian agents trying to sell ammonia to Taiwan and South Korea. So far this year, he said, he has not seen any evidence that Iranian tons are making significant inroads in the Asian market.
A trader commented that the Arab producers would have pushed the prices higher if it wasn’t for the Iranian tons, but achieving prices in the mid-$450s/mt FOB is nothing to sneer at.
For now, sources are calling the market in the region balanced, with a slight nod to more demand than supply.
U.S. Gulf: Players last week say the market topped out as high as $383/st, but soon retreated. By Thursday, sources said $373/st FOB was done. The drop was attributed to a
Calgary-Agrium Inc. recently announced that it will donate $100,000 on behalf of Landmark, its newly-acquired rural services company, to the Australian Red Cross. Landmark Managing Director Richard Norton said the Red Cross is a vital organization in many rural areas around Australia and involves many rural people as volunteers. “Landmark has an extensive local presence and an interest in assisting farmers and rural communities wherever they can, so we hope this donation from Agrium will provide considerable benefit through the Red Cross,” he said. “Plainly this flood crisis is still developing, with months of the wet season yet to run and issues occurring in other parts of the country. Landmark will be working at the local level in all affected areas in the months ahead to assist people in recovering from this situation.” Viterra Inc., another Canadian company that has recently made acquisitions in Australia, said it has recently raised $7,500 in Canada for flood relief efforts in Australia.
Saskatoon-Potash Corp. of Saskatchewan Inc. (PotashCorp) recently announced a C$1 million contribution to Saskatchewan food banks to purchase food for individuals and families in need. Speaking from the warehouse of the Saskatoon Food Bank and Learning Centre, Bill Doyle, president and CEO of PotashCorp, stressed the importance of food in helping people and whole communities. “People cannot build healthy lives, or stronger communities, when they are hungry,” said Doyle. “When we help our neighbors meet their basic food needs, we feed hope, change, and the opportunity to improve their lives.” PotashCorp’s gift will be used immediately to restock the shelves of 19 food banks across the province and nine affiliated locations. According to the most recent statistics collected by Food Banks Saskatchewan, more than 22,600 individuals visited food banks in Saskatchewan during March 2010, an increase of 20 percent from the same month in 2009. PotashCorp is committed to contributing 1 percent of its pre-tax earnings in communities where it operates, and supports local events and projects that bring people together and improve the quality of life for all.
San Francisco-Wilbur-Ellis Co. said Feb. 3 that it has reached a long-term agreement with Bayer CropScience LP to be exclusive marketer of propoxycarbazone-sodium for certain agriculture markets. Wilbur-Ellis will market and distribute to the U.S. range, pasture, and CRP markets. Wilbur-Ellis expects to launch under the trade name Canter R&P during the first quarter of 2011. “This collaboration allows for the extension of our proprietary line of brands containing propoxycarbazone-sodium to the untapped range and pasture segments, offering growers greater choice and a new active for efficient weed control,” said John McGregor, herbicide product manager at Bayer. “We continue to broaden our branded product line in this key and growing market segment,” said Jim Loar, senior vice president of sales and marketing at Wilbur-Ellis. “Our dedicated team of range and pasture specialists are focused on bringing value and solutions to ranchers and growers. Canter R&P will provide excellent control of a broad spectrum of key weed species and has shown excellent safety on pasture grasses.”
Regina, Sask.-Rack Petroleum Ltd., which owns and operates a fertilizer distribution plant located near Bigger, has pleaded guilty in Bigger Provincial Court to one charge and was fined a total of $19,600 under Saskatchewan’s occupational health and safety regulations. Five additional charges against Rack Petroleum were stayed. According to the province’s agency, which is similar to OSHA in the U.S., the charges related to an April 21, 2010, incident in which a worker was seriously injured when his arm was caught in a conveyer belt pulley. The company was charged with failure to ensure that a safeguard on a conveyer belt pulley remained in place at all times. In addition to the distribution plant, Rack also provides Saskatchewan custom fertilizer application, including spreading, floating, and spraying.
Southport, N.C.-Archer Daniels Midland Company (ADM) has signed an agreement with the Gypsoil Division of Beneficial Reuse Management LLC (BRM) to market gypsum (calcium sulfate) produced at ADM’s Southport, N.C., citric acid plant. The product is marketed as Gypsoil brand gypsum, used by producers to improve soil fertility and structure. “Gypsoil is an excellent option for supplying calcium, a nutrient that is important to a wide variety of crops, but particularly essential for peanut growers,” said Ron Chamberlain, director of gypsum programs for Gypsoil/BRM. Calcium deficiencies in large-seeded peanut varieties, including Virginia and Jumbo Runner types, produce underdeveloped kernels, dark spots on seeds, poor germination, poor grades, and pod disease. Peanut growers typically apply gypsum at rates of 1,000-2,000 pounds per acre to avoid these problems. The companies said applying Gypsoil to cropland also improves soil structure by neutralizing the metals and chemical salts that bind to clay particles and cause poor soil structure and sealing at the soil surface. “This results in less ponding and runoff after a rain, as well as less soil erosion when Gypsoil is used on tight clay soils,” said Chamberlain. Gypsum produced at ADM’s Southport facility is a co-product of citric acid production from corn fermentation. “We are excited about serving an even greater number of Southeastern growers through our partnership with Gypsoil,” said Katheryne Rehberg, ADM product manager, Acidulants. “Gypsoil brings a broad base of technical knowledge on the use of gypsum for agricultural production.”
Toronto-MagIndustries Corp. has confirmed that TSC Capital Ltd., Tortola, BVI, has opted to terminate due diligence that would have led to a 55 percent majority stake in Mag. Mag would have used the C$185 million in proceeds to finance the construction of the Mengo potash mine in the Republic of Congo. Chinese investors have also gone down the investment path with Mag, but have bailed as well (GM Feb. 8, Sept. 6, 2010). TSC says it does reserve all other rights granted to it pursuant to the letter of intent between TSC and MagIndustries dated December 21, 2010, including under the common share purchase warrants. Each warrant entitles TSC to acquire one common share in the capital of the company at an exercise price of C$0.32 per common share at any time until December 21, 2011. The issuance of the warrants was completed in conjunction with the issuance of one common share in the capital of the company at a price of C$0.32. If exercised in full, the common shares issuable to TSC pursuant to the warrants will bring TSC’s ownership of Mag to approximately 19.9 percent of the issued and outstanding shares. In other news last week, Mag reports that Bill Burton, the founder of the company, has resigned his position as a director effective immediately. Rich Morrow, current MagIndustries CEO, will take his place as a director.
