All Posts from May 27, 2013

TFI names Christopher Jahn as new president

News, News Briefs

Washington — Christopher L. Jahn has been named president of The Fertilizer Institute (TFI), and will assume the helm at TFI on Sept. 9. He succeeds Ford B. West, who announced his plans to retire on Jan. 7, 2013 (GM Jan. 14, p. 10). Jahn will also serve as president of the Nutrients for Life Foundation. Jahn comes to TFI from the National Association of Chemical Distributors (NACD), where he has served as president since 2006. Prior to his work with NACD, he was president of the Contract Services Association, and before that, chief of staff to U.S. Senator Craig Thomas (R-Wyo.). “I am pleased to be joining TFI and am excited about representing the fertilizer industry, which is so vital to world food production,” Jahn said. “I look forward to working with TFI’s members to expand TFI’s reach with policymakers and the general public.” During his tenure at NACD, Jahn directed successful initiatives to advance the association’s role in the legislative and regulatory arenas, including expanding the profile and effectiveness of Responsible Distribution, a third-party verification program that requires members to continuously improve performance in environmental, health, safety, and security activities. “Chris’s experience in the security, environmental, and product stewardship arenas will enhance TFI’s advocacy on behalf of the fertilizer industry,” said TFI Chairman and Mosaic Co. President Jim Prokopanko. “He has demonstrated the ability to enhance a trade association’s profile by building consensus within the community of members and with like-minded allied organizations. He will be a tremendous asset to the Institute as we seek to further strengthen our members’ voice in Washington, D.C.” West is retiring after 34 years of service to TFI. He joined TFI in 1979 and rose through the ranks, first serving as director of member services before being promoted to assistant vice president in 1982, vice president of government relations in 1984, and senior vice president in 1999. West has served as president of TFI since Sept. 6, 2005.

The Week in Fertilizer Stocks

Fertilizer Stocks

The Week in Fertilizer Stocks

Producer Symbol Price Week Ago Year Ago
Agrium AGU 89.74 90.04 79.16
CF Industries CF 188.88 190.75 167.32
CVR Partners UAN 24.18 26.41 21.83
Intrepid Potash IPI 18.00 17.53 19.15
Mosaic MOS 60.02 61.11 48.37
PotashCorp POT 41.79 43.78 39.27
Rentech Nitrogen RNF 32.73 33.04 23.29
Terra Nitrogen TNH 215.75 220.85 186.66
Distribution/Retail
Andersons Inc. ANDE 53.16 53.70 44.64
Deere & Co. DE 87.18 89.39 75.95
Scotts SMG 48.30 48.65 44.23

Ammonia

Ammonia, Black Sea, Eastern Cornbelt, Market Watch, Middle East, Southeast, Southern Plains, Tampa, U.S. Gulf, Western Cornbelt

U.S. Gulf/Tampa: Recent business in Yuzhnyy had some questioning if Tampa prices in June might tick up, though others continue to maintain they are on their way down.

Eastern Cornbelt: Powerful thunderstorms pounded parts of Indiana early in the week, but growers in much of the region were able to knock in a lot of corn and soybeans after a week of brisk planting activity at mid-month.

As of May 19, corn planting had vaulted to 74 percent complete in Illinois and Ohio, up dramatically from the previous week’s estimates of 17 percent and 46 percent, respectively. Indiana growers had 64 percent of the corn planted by May 19, up from 30 percent the previous week and within 1 percentage point of the five-year average for that date.

Soybean planting had also surged ahead, with 45 percent of the crop seeded in Ohio, 30 percent in Indiana, and 19 percent in Illinois. As with corn, those percentages were up significantly from the previous week, with Ohio’s progress now more than 10 points ahead of the five-year average.

With demand ebbing quickly in favor of UAN or urea, sources tagged the spot ammonia market in the $730-$750/st FOB range in the region last week.

Western Cornbelt: Midwest contacts have said all spring that once growers were able to get in the field, corn planting would happen at a blistering pace.

Although delayed significantly, that rapid planting pace finally happened in mid-May. USDA reported that fully 70-71 percent of the corn crop in Iowa and Missouri was planted by May 19, still trailing the five-year average for both states, but up dramatically from the previous week’s 15 percent in Iowa and 28 percent in Missouri.

Meanwhile, Nebraska growers had 84 percent of the corn planted by May 19, a jump of more than 40 percentage points from the previous week. Soybean planting was also off to a good start, with progress rated at 33 percent complete in Nebraska, 16 percent in Iowa, and 13 percent in Missouri. Those figures compared with just 1-7 percent complete the previous week.

Sources continued to talk of anhydrous ammonia volumes “taking a hit” as growers switch to UAN and urea for sidedress. The spot ammonia market remained at $680-$685/st FOB Nebraska terminals, $700-$720/st FOB in Iowa, and up to $725/st FOB Palmyra, Mo.

Southern Plains: Parts of the Southern Plains region endured three consecutive days of powerful tornado activity last week, ending with the deadly EF5 tornado that ripped through Moore, Okla., on May 20.

In areas of the region that weren’t battered by tornadoes, high winds, and rainfall, sources reported steady fieldwork last week. A central Kansas source said temperatures in the 70s and well-timed rains have pushed newly planted corn to the three-leaf stage in his trade area,

Corn planting in Kansas and Colorado was roughly 20 percentage points behind the five-year average, with progress as of May 19 estimated at 59 percent complete in Colorado, 71 percent in Kansas, and 84 percent in Texas. The Kansas soybean crop, at 14 percent planted by that date, was also 21 points behind the average pace.

Significant planting delays were also reported for cotton and sorghum in much of the region, with progress on the latter ranging from just 3 percent complete in New Mexico to 74 percent in Texas.

Anhydrous ammonia was described as a “moving target,” with spot pricing in the $640-$650/st FOB range out of regional production points and $660-$670/st FOB Kansas pipeline terminals.

Sources said Agrium’s Borger, Texas, plant was down last week but hoping to restart soon.

South Central: Most of the South Central region was far too wet for fieldwork last week.

The heavy rain produced another rise

Urea

Black Sea, China, Eastern Cornbelt, India, Market Watch, Middle East, Pakistan, Southeast, Southern Plains, U.S. Gulf, Urea, Western Cornbelt

U.S. Gulf: The granular prompt barge market found its footing last week. Sources reported new trades within the $325-$330/st FOB range, with the price working its way up as the week progressed. One player predicted that buyers would be unable to find sub-$330/st FOB product in the next round of trading.

Sources said the floor was found for simple reasons – demand and lower prices. Several barges have traded in the past few weeks as prices dropped to the $320s/st FOB. As a result, sources said the swollen import inventories have been significantly depleted.

As with other commodities, well-positioned upriver cargoes were garnering a premium to barges still at NOLA.

Most agreed last week that prills have come down to be more in line with granular. The range was called $335-$350/st FOB.

Eastern Cornbelt: Urea pricing had reportedly slipped to $385-$410/st FOB in the Eastern Cornbelt region, with the low in Illinois.

Western Cornbelt: Sidedress movement of urea was picking up in the region last week. Sources in both Missouri and Iowa quoted the low end of the regional terminal market at $380-$390/st FOB, with several sources quoting $385/st FOB as a common dealer price for granular urea out of river locations.

The upper end of the regional range was pegged at the $400/st FOB level out of inland warehouses.

Southern Plains: Granular urea pricing had reportedly fallen to $365-$370/st FOB the Tulsa, Okla., market, with reports that some deals may be taking place slightly under that range as the week advanced.

South Central: Sources reported some urea movement taking place on corn in the South Central region as growers try to replace nitrogen lost to excessive moisture. Urea movement on rice remained a “nonevent” last week, said one source, due in part to significant cuts in rice acreage in the region.

Urea pricing out of regional terminals was down some $20/st from last report, with the low end quoted at $380-$385/st FOB Memphis and the upper end reported at $400/st FOB Pine Bluff, Ark., and Greenville, Miss. Other spot prices last week included $390/st FOB Owensboro, Ky., and $395/st FOB Mermentau, La.

“Rice acreage is down, and that’s playing into this urea market for sure,” said one source. “The feeling is that there’s still so much urea out there that supply will overshadow demand.”

Southeast: Much of the Southeast was wet last week, although Georgia sources reported brisk planting activity at midweek.

Carolina contacts said most of the corn is planted and growers were focusing on cotton, tobacco, and peanuts before last week’s precipitation stalled activity. A North Carolina source said his location received 2-3 inches of rain over the previous weekend, which pushed planting progress back roughly 20 percentage points from the average for this time of year.

Sources reported pressure on spot nitrogen prices in the region. Granular urea pricing had reportedly slipped to $430-$435/st FOB most port terminals in the Southeast, down $10/st from last report.

India: Any hopes of an early tender call from India were dashed during the IFA meeting in Chicago.

Sources from around the globe were convinced the Indians will not call a tender until sometime in the first half of June. Some, who had earlier predicted a late-May call, were especially pessimistic and left Chicago thinking nothing will happen in India until June 15.

Traders say holding off on the tender call as long as possible makes sense for the Indians. The Indian supplies on hand are sufficient, and the tons in the pipeline from the April IPL tender will keep farmers happy for some time.

Sources at the I

Nitrogen Solutions

Eastern Cornbelt, Market Watch, Southeast, Southern Plains, U.S. Gulf, UAN, Western Cornbelt

U.S. Gulf: NOLA UAN barges remained under pressure last week, with most putting the market within the $290-$300/st ($9.06-$9.38/unit) FOB range. Some predicted a big fall in pricing and a significant drop for spring fill.

For now, however, inland prices are reported to be firm as dealers struggle to meet demand and suppliers scurry to line up product to replenish tanks. The question is whether there will be a lot left over in the supply chain as demand drops off.

Eastern Cornbelt: UAN-28 pricing remained relatively stable at $330-$340/st ($11.79-$12.14/unit) FOB in Ohio and Indiana, with UAN-32 pegged in the $380-$390/st ($11.88-$12.18/unit) FOB range in Illinois.

Western Cornbelt: UAN was moving for sidedress in the Western Cornbelt region last week. Sources quoted dealer pricing for UAN-32 in a broad range at $360-$380/st ($11.25-$11.88/unit) FOB in the region, depending on location.

One Missouri source pegged the common market at $365-$370/st ($11.41-$11.56/unit) FOB for prompt pull and “holding pretty good.”

Southern Plains: Sources continued to quote the UAN-32 market at $345-$360/st ($10.78-$11.25/unit) FOB in the Southern Plains region, with the low end reported in Texas.

Most pegged the dealer market out of Oklahoma production points squarely in the middle at $350-$355/st ($10.94-$11.09/unit) FOB.

South Central: UAN-32 pricing in the South Central region was down from last report. Sources pegged the regional terminal market in the $350-$370/st ($10.94-$11.56/unit) FOB range, with the low in Louisiana and the upper end in the Arkansas and Memphis markets.

Although there was a strong UAN run earlier this spring, sources now described the market as long, with minimal demand. Some speculated that sub-$350/st deals could also be had; the market is “whatever it takes,” said one contact.

Southeast: One source in the Carolinas estimated that UAN sidedress movement on corn was two-thirds complete in his trade area, but was not yet started on cotton in the region. Some sources indicated concerns about weather-related cutbacks in spring volumes. “I’d rather be empty in 30 days than sitting half-full,” said one source.

The UAN-32 market was pegged at a “weak” $330/st ($10.31/unit) FOB Wilmington, N.C., Norfolk, Va., and terminals in the Georgia market, down roughly $10/st from last report. There were reports of spot UAN-32 sales in the Wilmington market in the low-$300s/st FOB as the week progressed, but those deals were not confirmed.

East Coast sources pegged the inbound vessel market for UAN-32 at the $320/mt CFR level last week, down some $15-$17/mt from last report.

Ammonium Nitrate

Ammonium Nitrate, Market Watch, Southeast, Southern Plains, U.S. Gulf, Western Cornbelt

U.S. Gulf: Thin and quiet remained the watch words for ammonium nitrate barges, with the last done business still called $345/st FOB.

Western Cornbelt: Ammonium nitrate was steady at $400-$405/st FOB in the Western Cornbelt region.

Southern Plains: Ammonium nitrate remained at $385/st FOB the Tulsa market.

South Central: The ammonium nitrate market was steady at $385-$390/st FOB most terminals in the South Central region.

Ammonium Sulfate

Ammonium Sulfate, Eastern Cornbelt, Market Watch, Southeast, Southern Plains, Western Cornbelt

Eastern Cornbelt: Granular ammonium sulfate was quoted at $375-$395/st FOB in the Eastern Cornbelt region, down slightly from last report.

Western Cornbelt: Granular ammonium sulfate pricing slipped slightly in the region, with sources quoting the dealer market in the $355-$385/st FOB range last week.

Both the high and low ends of the range were quoted in Iowa, with the lower numbers coming from suppliers who are “trying to push it out the door” due to slow demand, according to one contact. A Missouri source quoted the common dealer price last week at the $365/st FOB level for prompt business.

The ammonium thiosulfate market remained in a broad range at $325- $365/st FOB, depending on location.

Southern Plains: Granular ammonium sulfate was steady at $330-$365/st FOB in Texas, depending on location, with the low FOB Freeport and the upper end FOB Littlefield and Plainview.

Ammonium thiosulfate was unchanged at $300-$310/st FOB in the Southern Plains region.

South Central: Granular ammonium sulfate pricing had reportedly slipped to $340-$355/st FOB terminals in the South Central region.

The ammonium thiosulfate market remained at $335-$340/st FOB last week.

Southeast: The granular ammonium sulfate market was unchanged at $360-$375/st FOB and $380-$395/st DEL in the Southeast, depending on location. List prices for standard grade ammonium sulfate included $230/st FOB Augusta, Ga., and $270/st rail-DEL in Florida.

Phosphates

Central Florida, Eastern Cornbelt, India, Market Watch, Phosphate Rock, Southeast, Southern Plains, Triple Superphosphate, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida: A trader said there was no longer any reason to send phosphate railcars to the Northeast or other areas served by Central Florida because planting was nearly finished and dealers do not want to store any more than necessary over the summer months.

Although posted prices have not changed in months, a source said DAP could be purchased well under the lowest price posted by Mosaic, which was $55/st FOB lower than CF Industries’ last posting.

Based on that information, the new Central Florida price range was set at $450-$520/st FOB, down from $465-$520/st FOB the previous week. Large customers were receiving the best prices. Mosaic’s list price was $465/st FOB for rail and $480/st FOB for trucks, while CF was posted at $520/st FOB.

PCS Sales was selling at market prices out of Aurora and White Springs. A source quoted the DAP price out of Aurora at $497/st last week.

MAP continued to bring a $20/st premium over DAP at Central Florida.

U.S. Gulf: USDA reported the biggest U.S. corn planting in history for a single week, with growers seeding 41.8 million acres from May 13-20. That brought the total amount planted by May 20 to 71 percent of the crop.

The impact the rapid planting pace will have on phosphates was unclear. Some said enough was purchased and applied last fall to make up for the somewhat disappointing spring season, but others were not so sure.

Corn for July was $6.615/bushel last week, up from $6.415/bushel a week earlier, while corn for December 2013 moved up to $5.3325/bushel from the previous week’s $5.24/bushel. Corn for December 2014 was $5.505/bushel, up from $5.3925/bushel the previous week.

Soybeans for July were $15.05/bushel last week, up from $14.275/bushel a week earlier, while soybean prices for November 2013 moved up to $12.4175/bushel from the previous week’s $12.175/bushel. Soybeans for November 2014 were posted at $12.40/bushel, also higher than the previous week’s $12.2225/bushel.

Wheat for July 2013 increased to $7.0325/bushel from $6.8775/bushel for the previous week, while wheat for July 2014 was listed at $7.485/bushel last week, up from $7.3875/bushel the previous week. Wheat for July 2015 firmed to $7.53/bushel from the previous week’s $7.485/bushel.

NOLA DAP barge trading continued to be light last week. Despite the low number of transactions, not a lot of NOLA DAP barges were on the river system last week, but activity at warehouses and terminals was brisk in most areas.

Recent export activity has helped prevent the additional erosion of phosphate prices on the river system, and exports were expected to pick up during the next month.

The NOLA DAP barge price range changed from the previous week’s $415-$420/st FOB to $415-$428/st FOB last week. The lowest prices were for Russian DAP, while Moroccan product was as high as $425/st FOB.

MAP barges were in the $430-$450/st FOB range, but with little activity.

Eastern Cornbelt: DAP was steady at $490-$510/st FOB regional warehouses, with the low end out of river terminals and the higher numbers inland. MAP was $10/st higher.

10-34-0 was tagged at $525-$545/st FOB in the Eastern Cornbelt region.

Western Cornbelt: DAP was pegged in the $485-$500/st FOB range in the Western Cornbelt, with the low in southern Missouri. Iowa sources pegged the common dealer market in the $490-$500/st FOB range.

MAP was $10/st higher than DAP.

10-34-0 remained in a broad range at $470-$525/st FOB in the Western Cornbelt, with the low in Nebraska and the upper end in Iowa and Missouri.

Southern Plains: DAP pricing had reportedly slid to $480-$485/st FOB the Tulsa market, down $10-$15/st from last report, with MAP quoted in the $495-$

Potash

Eastern Cornbelt, Market Watch, Potash Muriate, Southeast, Southern Plains, U.S. Gulf, Western Cornbelt

U.S. Gulf: Potash barges remained in the $410-$415/st FOB range.

Eastern Cornbelt: Potash was pegged in the $445-$460/st range FOB regional warehouses in the Eastern Cornbelt.

Western Cornbelt: Potash remained at a flat $445-$457/st FOB regional warehouses, with the low for red granular tons and the upper end quoted in the Missouri market for white granular potash.

Southern Plains: Potash pricing was tagged at $445-$450/st FOB regional warehouses. Granular pricing FOB Carlsbad, N.M., remained at a nominal $465/st FOB.

South Central: Potash pricing in the South Central region was pegged at $440-$445/st FOB most regional warehouses.

Southeast: Potash pricing continued to slide in the Southeast. Granular tons were quoted at the $440/st mark FOB regional warehouses on the low end, down $10/st from last report, with rail-delivered business reported in the $450-$460/st range in the region.

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