All Posts from June 24, 2013

House rejects farm bill after Senate passage

News, News Briefs

Washington — The U.S. House of Representatives on June 20 voted 234-195 against a new farm bill, just 10 days after the Senate passed its version of the bill, The Agriculture Reform, Food, and Jobs Act of 2013 (S. 954), by a vote of 66-27. The House bill would have cut projected spending in farm and nutrition programs by nearly $40 billion over the next 10 years, with $20.5 billion of those cuts coming from the food stamp program. Those cuts were not enough for the House’s more conservative members, however. The Senate bill, estimated to cost $955 billion over the next 10 years, would reauthorize many of the nation’s food and agricultural programs while reducing spending by roughly $24 billion over 10 years. The Senate bill cuts would come from consolidating conservation programs, reducing food stamps funding, and slashing farm subsidies by some $17 billion. Agriculture groups expressed disappointment in the House vote, while earlier applauding the Senate bill (GM June 17, p. 11). It was unclear last week if House leaders would try to revive its version of the bill.

Agrium operations not impacted by flood

Breaking Industry News

Calgary-based Agrium Inc. told Green Markets today that there has been no impact to its operations from the flooding in Alberta. The only potential impact would be some delays of Canpotex potash shipments to the West Coast due to mudslides over railway tracks.

In Western Canada, an Agrium spokesman said “rain makes grain" as well as bugs and disease so it should be a net positive for farmers. Agrium said while some flooded acreage that had been seeded and fertilized will be lost; overall this will be very small amount of land.

CF shuts down plant due to flooding

Breaking Industry News

CF Industries Holdings Inc. said June 23 that it conducted an orderly shutdown of its Medicine Hat, Alberta, nitrogen complex on Friday in advance of flooding along the South Saskatchewan River. The site on which the complex itself is located is approximately 200 feet above the normal river level. However, the pump house containing equipment used to draw river water for plant operations is near the river bank and within the area impacted by high water levels. Regional officials have reported that the river is expected to crest sometime Monday.

"In anticipation of flooding in the Medicine Hat area, we brought the plant down safely and have taken measures to protect the equipment in the pump house," commented Tony Will, CF senior vice president of manufacturing and distribution. "We are in contact with our customers and will let them know when we expect to resume production and deliveries from this facility. We are, of course, concerned with the well-being of our employees, their families and the Medicine Hat community as they deal with the high water."

Urea prices crash on STC tender results

Breaking Industry News, China, India

The STC tender closed June 22 with offered prices dramatically lower than expected. In the run up to the tender, industry sources were predicting offers of $315-$320/mt CFR. Instead, the lowest offer with 140,000 mt came from Ameropa at $303.33/mt CFR. Ameropa offered an optional 140,000 mt at the same price.

Rounding out the bottom five offers were:

  • Rare Earth, 150,000 mt for $303.43/mt CFR
  • Transglobe, 270,000 mt for $304.10/mt CFR
  • Dreymore, 360,000 mt for $311.11/mt CFR
  • Blue Debbaj, 150,000 mt for $311.44/mt CFR

All told the lowest five companies offered 1.07 million mt.

The standard pattern would be for STC to use the Ameropa price as the basis for the other companies to match. The tender documents called for all offers to be valid through July 28.

The last tender run by MMTC netted India just a little more than 1 million mt. In the lead up to the tender closing, traders were speculating that STC would also take another million tons, leaving open the possibility of another tender soon from IPL.

The prices offered will push the global prices down even further. Chinese material in the offers could have a netback in the $280s/mt FOB, significantly lower than the $300/mt FOB cited just last week.

Iranian material would have a netback in the low-$280s/mt FOB.

An award from this tender will put more pressure on Yuzhnyy and Arab producers to lower their prices. The CIS producers have already indicated they would prefer extended turnarounds rather than lower their prices further.

The Week in Fertilizer Stocks

Fertilizer Stocks

The Week in Fertilizer Stocks

Producer Symbol Price Week Ago Year Ago
Agrium AGU 86.36 89.89 86.36
CF Industries CF 184.42 185.64 179.46
CVR Partners UAN 22.79 23.19 22.70
Intrepid Potash IPI 18.72 19.00 20.94
Mosaic MOS 56.83 58.70 51.97
PotashCorp* POT 39.66 40.78 40.80
Rentech Nitrogen RNF 28.00 29.20 23.41
Terra Nitrogen TNH 205.50 205.25 184.06
Distribution/Retail
Andersons Inc. ANDE 53.02 53.29 42.92
Deere & Co. DE 82.89 85.60 76.86
Scotts SMG 47.97 47.81 40.08

Sulfur fertilizer prompts Kentucky squabble

News, News Briefs

Louisville — A new $13 million sulfur fertilizer plant here that expects to use 300,000 st/y of gypsum from Louisville Gas & Electric’s (LG&E) Mill Creek Generating Station, while widely-hailed in an Earth Day opening, is now undergoing more scrutiny. The local press has focused on two things: a $2.5 million, 3.5 percent, seven-year loan granted to Charah Inc. for the plant out of tobacco settlement funds; and assertions by University of Kentucky agronomists that Kentucky farmers do not need more sulfur in their soil. Kentucky Agriculture Commissioner James Comer (R) has defended the bipartisan initiative, saying that his own farm is sulfur-deficient and that he has relied on the advice of farmers and agricultural retailers and not research universities. The Charah plant sits on 4.5 acres of the 570-acre LG&E site. In addition to making pelleted SUL4R-PLUS fertilizer, Charah will also assist LG&E in fly ash disposal. Charah says the fertilizer, which is 16 percent sulfur and 22 percent calcium, is a uniform size that can be applied with other dry inputs and spread evenly for superior coverage. The company says since the fertilizer is a sulfate it starts working almost on contact and dissolves with water in the soil solution, and that the product works across a broader range of weather and humidity conditions. Unlike ammonium sulfate, Charah says the fertilizer will not absorb moisture from the air under hot and humid conditions to become sticky in equipment. Charah also says the product is pH-neutral and does not require limestone to correct soil acidity after application. Nation-wide, ammonium sulfate consumption was up 18.9 percent in fertilizer year 2010-2011 from 2009-2010, according to the recent Commercial Fertilizers 2011, to 1.5 million st from 1.26 million st.

The Sulphur Institute – Management Brief

Management Briefs

The Sulphur Institute (TSI) recently announced that Catherine Randazzo, TSI president and CEO, is leaving the organization to pursue other interests. She has served TSI in these roles since 2008. “Ms. Randazzo had a positive impact on TSI during her tenure in the areas of membership, symposia attendance, grant awards, and development of a new website, among other achievements,” said TSI Chair Robert McBride. “We wish her the best in her future undertakings.”

TSI has appointed an interim staff leadership team consisting of Don Messick, vice president, communications, marketing and agriculture, and Harold Weber, vice president, industrial programs, to manage the association’s activities in conjunction with the member management team. A search committee has been organized to seek candidates for the president position.

The Mosaic Co. – Management Brief

Management Briefs

Andy Jung has joined The Mosaic Co. as director, market and strategic analysis. He will direct the analysis of global agricultural, plant nutrient, and energy markets in order to support short term operating, commercial, and raw materials sourcing decisions of the company, as well as to identify and evaluate long-term growth opportunities. Jung will report to Dr. Michael Rahm, vice president, market and strategic analysis.

Jung spent 10 years at CRU in various roles, including leading the group’s phosphate research program and serving as the lead consultant on a wide range of strategic consulting assignments across the agriculture, crop nutrient, and raw materials sectors. Most recently, he held the position of vice president, business development, at Stonegate Agricom, focusing on the commercial aspects of their Paris Hills phosphate rock project in Idaho, including the completion of a positive feasibility study.

Ostara Nutrient Recovery Technologies Inc. – Management Brief

Management Briefs

Ostara Nutrient Recovery Technologies Inc., Vancouver, has appointed John Guglielmi as senior vice president, fertilizer sales.

“As we expand our production of Crystal Green fertilizer, it is critical to have the sales leadership in place to guide the growth within the agriculture, turf, and ornamental markets,” said Phillip Abrary, Ostara President and CEO. “John’s tremendous industry experience and sales and marketing leadership puts us in a position to capitalize on the growing market demand for enhanced efficiency fertilizers.”

Guglielmi has over 20 years of wholesale and retail fertilizer sales and marketing in the production agriculture, professional turf, and ornamental horticulture markets. He was formerly director of sales and marketing for The Andersons Plant Nutrient Group, Southern Region, and national sales director for Applied Solutions and Technology, a business unit of Douglass Fertilizer and Chemical. He is both a Certified Crop Advisor and a Certified Turfgrass Professional.

Ostara says Crystal Green is the first nutrient technology to offer plant-activated, slow-release fertilizer sustainably made from renewable sources. Ostara extracts nitrogen and phosphorus from municipal and industrial wastewater. It is a blend of N, P, and magnesium. The company says the citrate-soluble granules offer more consistent, plant available nutrients than conventional water-soluble phosphorus fertilizers, resulting in greater fertilizer efficiency, lower application rates, and reduced nutrient loss through leaching and runoff.

Guglielmi will oversee sales and business development strategies in the global specialty agriculture, turf and ornamentals market. He is based in Florida and can be reached at 813.310.0700, or at jguglielmi@ostara.com.

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