All Posts from February 28, 2011

Agrotain introduces Ultra liquid in Canada

News Briefs

St. Louis, Mo.-Agrotain’s more concentrated version of its liquid nitrogen formulation, which was launched successfully last year in the U.S., is now available in Canada. Marketed as Agrotain Ultra, the new product is designed with both the ag retailer and the farmer in mind. Agrotain’s Jeff Whetstine, vice president for global marketing, told Green Markets that Agrotain Ultra has been in development for a couple of years, with the aim of reducing the amount of storage space and packaging required and also to reduce the amount of product needed at the time of fertilizing. “In the past the fertilizer dealer would have to apply four quarts per ton for urea. With the new product this has been reduced to three quarts.” He said another plus is that the dealer now has fewer containers to contend with during the mixing process, which requires just a few minutes. The new product also uses Agrotain’s proprietary “StabilizedNitrogen” technology, which is meant to limit the volatility losses of nitrogen into the air following urea and UAN application by inhibiting the urease enzyme in the soil. Agrotain points out that reducing volatilization extends the availability of nitrogen to plants, thus improving yield and plant health. Whetstine added that the cost is very reasonable in light of the increases in nitrogen prices. He said this helped make the reception in the U.S. very positive and the same is expected in Canada, where major crops are cereal grains, canola, and flax. “Farmers need to make sure the nitrogen they apply stays with the crop and this product helps them to increase their nitrogen efficiency,” he explained. “If the farmer wants to add Agrotain Ultra to urea he just puts it in at the time it’s blended and it’s just as easily added with UAN solution at the rate of 1½ quarts per ton because it is a very powerful formulation.”

The Week in Fertilizer Stocks

Fertilizer Stocks
Producer Symbol Price Week Ago Year Ago
Agrium AGU 91.60 97.05 63.22
CF Industries CF 134.02 147.81 100.79
Intrepid Potash IPI 37.06 39.37 27.44
Mosaic MOS 82.20 86.75 57.62
PotashCorp POT 173.78 186.25 108.52
Terra Nitrogen TNH 115.41 122.51 94.40
Distribution/Retail
Andersons Inc. ANDE 46.71 48.81 32.12
Deere & Co. DE 88.91 95.26 56.18
Scotts SMG 53.33 53.04 38.32

Market Watch

Ammonia, Black Sea, Eastern Cornbelt, Market Watch, Middle East, North Africa, South Central, Southern Plains, U.S. Gulf, Western Cornbelt

AMMONIA

U.S. Gulf/Tampa: Buyers and sellers are reportedly still at loggerheads over Tampa prices for March. While buyers are trying to hold the line as much as possible, sellers are looking for a significant boost over February’s $515/mt DEL. February was up $40/mt over January, and sources say a $40/mt plus increase for March is not out of the question.

Eastern Cornbelt: Anhydrous ammonia was steady at $675-$680/st FOB Illinois terminals.

Western Cornbelt: The anhydrous ammonia market was steady at $630-$670/st FOB regional terminals, depending on location and time of delivery.

Southern Plains: The anhydrous ammonia market remained at $590-$615/st FOB regional terminals for prompt tons, with the low out of southern production points and the upper end out of pipeline terminals in the Kansas market.

South Central: The ammonia market was quoted at $665-$675/st FOB terminals in the region, with the low reported out of Memphis, Tenn., and the high at Henderson, Ky.

Middle East: Prices keep moving up in the region. Sources report a sale of 23,000 mt to Mitsui from Sabic at $460/mt FOB late last week. That deal moves the price up another $5/mt from the previous week.

One trader noted that the price could have run up even higher if it wasn’t for the ever-present Iranian tons.

Sales to India from the area are being pegged to the Iranian price. And that usually means only Iran is supplying the tons.

The Arab producers all report mostly full order books and healthy contracts. One producer agent said there is no reason for his company or other producers to lower prices.

The Sabic sale was described as an alignment of need, availability, and an agreeable price. The fact that the deal went for $460/mt FOB, said one trader, was evidence enough that the product was not destined for India.

The most likely end user is in East Asia.

The last Iranian price was put in the mid-$440s/mt FOB, but that was a couple of weeks ago. Sources say the Iranians are more than willing to follow the upward trend in prices. Chances are, said one source, that March will show significantly higher prices from Iran as the Arab producers continue to push prices up as well.

Sources peg the market at the close of last week at $455-$460/mt FOB.

A plus for buyers was recent news that the Saudi Ma’aden project now has ammonia production online and available to the ammonia market until the project’s DAP facilities are up and running. The ammonia unit is expected to ship its first product in March.

Black Sea: Industry observers see strong demand from the United States and Europe as the main drivers in pushing up the Yuzhnyy price. Late last week a sale at $485/mt FOB was reported, with higher prices expected going into March. The sources could not name the buyer of the material, but they did say the tonnage was sufficient enough to be an important marker in the market.

The Yuzhnyy market appears to be the main beneficiary of the disturbances in Libya.

Yara announced it is closing its operations in Libya until the situation stabilizes. Most of the ammonia that came out of the plant is sold to Europe. Traders say that European buyers are being forced to look elsewhere for their tonnage. The Baltic and Black Sea suppliers are the logical sources.

The price for Yuzhnyy is pegged at $480-$485/mt FOB, with growth expected.

North Africa: Unlike the uprising in Egypt, the revolt against the government in Libya has the potential of seriously affecting the ammonia market in the Mediterranean.

Yara is closing its facility until things calm down. The ammonia from the Ya

Management Briefs – February 28, 2011

Management Briefs

The Micronutrient Manufacturers Association (MMA) elected new officers during their recent meeting in Scotts-dale, Ariz. Elected as officers are Ron Restum, Agrium Advanced Technologies, as chairman; Mike Deiker, Tetra Micronutrients, as vice chairman; and Joel Bzura, Old Bridge Chemicals Inc., as secretary/treasurer. They are joined on the MMA board of directors by Immediate Past Chairman Richard Camp, Kronos Micronutrients Inc., and Dirk Lohry, Nulex. Steven Beckley of S. Beckley and Associates serves as executive director and manages the association. Additional members of the MMA are Cameron Chemical, Core Agri, QC Corp., The Mosaic Co., US Borax, Inc., Valudor Products, Winfield Solutions, Wolf Trax Inc., and Yara North America. MMA, formed in 2009, represents manufacturers and formulators of products that provide micronutrients essential for plant growth. The purpose of the association is to promote, educate, and sponsor research on the agronomic use of micronutrients. MMA also engages in legislative and regulatory activities and facilitates industry communications.

The Uralkali board of directors on Feb. 21 appointed Vladislav Baumgertner as CEO. The board resolved to cancel the position of Uralkali president. Baumgertner left the position of director general at Uralkali last summer and later became CEO of Silvinit.

Baumgertner replaces Pavel Grachev, who had headed Uralkali during the transition period. Grachev will continue his work in the company as a member of the board. Uralkali and Silvinit hope to complete their merger by the beginning of the second quarter.

GCIS buys majority stake in AGT

News Briefs

Santiago-GCIS Chile SpA, owned by Gowan Comércio Internacional e Serviços Limitada (GCIS), has acquired a majority share in Agro Technology S.A. (AGT) located in Santiago, Chile. GCIS says it will expand its presence in the South American crop protection markets. GCIS said AGT’s support of IPM programs aligns perfectly with GCIS’s goal of bringing a bio-pesticide and chemical approach to Chile and other South American countries for fruit and vegetable crops. The existing management at AGT will continue operating AGT and serving its customers in Chile.

Nufarm, Valent form alliance in Mexico

News Briefs

Burr Ridge, Ill.-Nufarm Americas and Sumitomo Chemical Co.’s affiliate Valent de Mexico (VdM) intend to form a strategic alliance in Mexico to distribute crop protection products. Nufarm will provide selected products from its line of herbicides, insecticides, and fungicides to VdM, which will offer those products through its established existing distribution channel. The companies say their offerings are complementary; in Mexico, VdM has focused on specialty crops and branded products, while Nufarm is one of the world’s largest suppliers of herbicides for broad-acre crops, as well as of a wide array of fungicides and insecticides. VdM will have exclusive rights to sell certain Nufarm products to its distributors under private branded labels. Nufarm will continue its model of selling product to industrial customers. The final agreement is expected to be completed by the end of the first quarter. Nufarm Americas is a subsidiary of Nufarm Ltd., a manufacturer, supplier, and marketer of crop protection products based in Australia.

Pesticide analysis gives N.D. waters clean bill

News Briefs

Bismarck-The North Dakota Department of Agriculture has conducted an unusually expansive assessment of pesticides, herbicides, and fungicides in the state’s rivers and streams, analyzing for 180 different chemicals and producing encouraging results. According to Jim Gray, director of the department’s pesticide, feed, and fertilizer division, 33 sites were monitored last year every six weeks from April through October in cooperation with the North Dakota Department of Health and the U.S. Geological Survey. “As a result of all those samples we had only 43 detections, and those were at very low levels. In fact, nine different pesticides were found, and all were at levels below federal standards for ecological impact or for drinking water,” Gray reported. He said the Red River had several detections for three chemicals that are starting to reach levels that merit further observation, but nothing of serious concern. Gray said he wasn’t sure this undertaking is unique to his state, but noted that state and federal funds were available and “we worked with our partners to make sure the best use was made of those funds.” Agriculture Commissioner Doug Goehring added, “These results also show that current regulations, use restrictions, and our enforcement strategy are effective in preventing pesticide contamination of surface water.”

DuPont announces global price hikes

News Briefs

Richmond, Va.-DuPont Protection Technologies on Feb. 8 announced price increases of 5-10 percent on all product lines depending on product type and geographic location. The increases include key brands DuPont Kevlar®, Nomex®, Tyvek®, and Sontara® and are being implemented immediately or as contracts permit. DuPont said details surrounding the new prices will be communicated locally in each country.

USDA deregulates corn amylase trait for ethanol

News Briefs

Washington-The National Corn Growers Association (NCGA) on Feb. 11 said it is pleased with the decision by USDA’s Animal and Plant Health Inspection Service (APHIS) to fully deregulate corn amylase for all markets. Amylase corn, which produces a common enzyme that breaks down starch into sugar, was developed by Syngenta Seeds to aid in the production of ethanol. Syngenta submitted a petition in 2007 to deregulate the genetically engineered corn seed, estimating that high-amylase seeds could cut ethanol production costs by 10 percent. APHIS has not found a plant pest risk associated with corn amylase and reported a positive Environmental Assessment, NCGA said. Corn amylase is approved in Japan, Canada, Mexico, New Zealand, Australia, Taiwan, and the Philippines, and was found to be safe for food and feed by the Food and Drug Administration in 2007. “Corn amylase is the first processing output trait to be scrutinized by our regulatory system,” said Bart Schott, NCGA president. “The potential importance of output traits to growers and industry will only increase as other output traits are developed.” Not all were happy with the decision, however. “The Obama administration is giving the green light to dirty and dangerous forms of corn ethanol despite significant health, food security and environmental concerns,” said Kate McMahon, biofuels campaign coordinator for the environmental group Friends of the Earth. “Instead of continuing to risk the health of people and the planet, we should reexamine the existence of the biofuel mandate.”

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