Nitrogen Solutions

U.S. Gulf: The bears were starting to take over on the UAN market, with sources saying that product is backing up and swollen inventories are causing some barge holders to sell off barges they no longer have a place for.

As a result, sources were calling these trades in the $315-$320/st ($9.84-$10.00/unit) FOB range, if not lower. Traditional sellers, however, were reportedly trying to hold the line and not sell at these lower numbers.

Eastern Cornbelt: The UAN-28 market continued to be quoted at $330-$335/st ($11.79-$11.96/unit) FOB Cincinnati and $345/st ($12.32/unit) FOB Burns Harbor, Ind. Illinois sources pegged the UAN-32 market at $380-$395/st ($11.88-$12.34/unit) FOB, depending on location.

Western Cornbelt: UAN pricing remained firm in the Western Cornbelt region. Sources quoted the UAN-32 market in the $385-$400/st ($12.03-$12.50/unit) FOB range, with delivered tons quoted at the $410/st ($12.81/unit) level in western Iowa.

Northern Plains: The UAN-28 market was reported at $355-$365/st ($12.68-$13.04/unit) FOB regional terminals in the Northern Plains, with the low FOB the Twin Cities and the upper end FOB Moorhead, Minn., and Jamestown, N.D.

Delivered UAN-28 was quoted at the $375/st ($13.39/unit) level in North Dakota.

Great Lakes: UAN pricing remained firm in the Great Lakes region. Wisconsin sources pegged the UAN-32 market solidly at the $395/st ($12.34/unit) FOB level, while UAN-28 out of Michigan terminals was quoted in the $345-$355/st ($12.32-$12.68/unit) FOB range, depending on location.

Northeast: Sources said nitrogen solutions pricing out of Baltimore was unchanged at $350/st ($10.94/unit) FOB for UAN-32 and $330/st ($11.00/unit) FOB for UAN-30.

Bunge fertilizer in plus column

White Plains, N.Y. — Bunge Ltd. reported that its fertilizer business had a first-quarter adjusted earnings before interest and tax of $3 million on sales of $66 million, compared to the year-ago loss of $12 million on sales of $63 million. Volumes were up as well, to 135,000 mt from the 124,000 mt. The company said that the pending sale of its Brazilian fertilizer business to Yara International ASA is on track to occur this year. It said results from its ongoing fertilizer operations were higher in both Argentina and from its Moroccan joint venture. Bunge-wide, net income attributable to Bunge almost doubled, to $180 million ($1.15 per share) on sales of $14.8 billion, up from the year-ago $92 million ($0.57 per share) on sales of $12.9 billion.

BLM seeks report on Monsanto pond leak

Soda Springs, Idaho — The Bureau of Land Management has given Monsanto 60 days to submit a corrective action report in regards to an earthen holding pond leaking three million gallons of water onto a meadow near its new Blackfoot Bridge Mine in southeastern Idaho’s phosphate-rich Caribou County. The March 29 breach along a spillway conduit in a catch basin created a 150-foot-long sediment plume on the wetland, but recent testing of the water showed no elevated selenium levels, said Randy Vranes, Monsanto’s mineral operations manager. The Blackfoot Bridge Mine is expected to start operating later this year, with a 17-year life expectancy. Monsanto’s South Rasmussen Mine is expected to be exhausted this year. Monsanto uses the phosphate from its mines to manufacture elemental phosphorus and Roundup weed killer at its plant near Soda Springs. BLM is working with other federal and state agencies to assess whether any statutory violations occurred and to review Monsanto’s reports and revised designs to ensure similar failures do not recur. The company has constructed a temporary berm so the pond is able to function consistent with the approved water management plan. Marv Hoyt, Idaho director for the Greater Yellowstone Coalition, said he toured the pond failure site and there was not a lot of sediment that flowed into and covered the wetlands downstream. “On the other hand, it is somewhat troubling that one of the simplest and least complex pieces of a highly complex mine failed,” Hoyt said. “It certainly gives us reason to scrutinize future mine proposals in the region.”

High water, barge accidents impact navigation on the Upper Mississippi and Illinois Rivers

High water on the Mississippi and Illinois Rivers prompted the U.S. Army Corps of Engineers last week to expand the number of lock closures, further limiting the movement of commercial barges. The river conditions also caused a number of barge accidents on both rivers.

The Corps announced on April 22 that it had closed Mississippi lock 24 in Clarksville, Mo., and lock 25 in Winfield, Mo., as well as the lock on the Kaskaskia River “to protect critical components and facilities and be able to restore services as quickly and economically as possible after water levels recede.”

The closures are in addition to eight lock closures that were announced earlier on the Mississippi between Muscatine, Iowa, and Clarksville (GM April 22, p.11). The Corps on April 18 said it would close locks 15-22 in staggered intervals beginning on April 18 and extending through April 21 due to high water fed by torrential rains and heavy snow in parts of the Midwest.

“We are working closely with our partner agencies, including the National Weather Service, the U.S. Coast Guard, state and local agencies, and the navigation industry to ensure safety of people and property, ensure safe navigation, and assist in reducing flood risk to communities and business,” the Corps said.

The flood waters are a striking change from just three months ago, when critically low river levels on the Mississippi nearly stopped barge traffic between St. Louis and Cairo, Ill. The threatened January closures raised concerns within the fertilizer industry that tons would not be adequately positioned for the start of spring planting, but the Corps was ultimately able to keep the navigation channel open with dredging operations.

Although a growing queue of northbound fertilizer barges was reportedly gathering at Cairo last week, fertilizer contacts were not particularly alarmed by the recent river closures, noting that movement out of Midwest warehouses was at a virtual standstill because of saturated field conditions. One contact in the Minneapolis, Minn., area told Green Markets that “a lot of barges are already in place up here.”

As of April 24, the Corps’ Rock Island District reported that lock closures were still being enforced at Mississippi locks 16-18 from Illinois City, Ill., to Gladstone, Ill., and at locks 20-22 from Canton, Mo., to Saverton, Mo. The Corps said those locks were expected to reopen between April 26-29.

Mississippi lock 19 at Keokuk, Iowa, reopened on April 24 after being closed for five days due to high water, and locks 11-15 from Dubuque, Iowa, to Rock Island, Ill., remained open and were not expected to close. In addition, the Corps said locks in Alton, Ill., and Granite City, Ill., are not currently anticipating closures.

Earlier in the week, the U.S. Coast Guard closed the Mississippi between mile markers 155-170 near St. Louis after high water caused 114 barges to break free from a fleeting area on April 20. Eleven coal barges reportedly sank, but navigation was expected to resume when salvage operations were complete.

River closures were also being enforced on April 21 at Vicksburg, Miss., between mile markers 415-435 when 27 coal barges and three grain barges broke free from a tow. One of the barges sank after hitting a railroad bridge. The river there reopened to southbound traffic early on April 22, and northbound traffic resumed after the queue of southbound vessels had been cleared.

On the Illinois River, lock closures were being enforced last week at Marseilles and at Starved Rock in Ottawa, Ill. The Thomas J. O’Brien lock in Chicago and the Dresden Island lock in Morris, Ill., reopened on April 21 after being closed for several days due to high water. Illinois River locks in Lockport, Joliet, Creve Coeur, and Versailles were open and not expected to close.

The Marseilles dam sus

Investigation continues at West Fertilizer; cause of fire and explosion still uncertain

Federal and state investigators were combing through the West Fertilizer plant site in West, Texas, last week to determine what caused the fire and massive explosion there on April 17. The devastating blast claimed 15 lives, injured more than 200, and destroyed or damaged hundreds of homes in a 37-block residential area of the small Texas town.

Officials on April 23 said they believed they had recovered all the bodies, capping the death toll at 15. Authorities confirmed that 10 of the victims were firefighters and two more were first responders. A memorial service, attended by President Obama, was held April 25 at Baylor University in Waco.

Authorities also revealed on April 23 that lightning had been ruled out as a cause of the fire and blast, and that a railcar loaded with ammonium nitrate that was present at the site had not been part of the explosion. The force of the explosion, which registered as a 2.1-magnitute earthquake and left a crater 93 feet wide and 10 feet deep, knocked the railcar off the spur and on its side, but both the car and its contents were intact after the blast.

Investigators also determined that the explosion originated from one of two storage buildings on the site, both of which were leveled in the blast. The plant itself consisted of approximately 11 structures on 10 acres, including several anhydrous ammonia tanks that were largely intact after the blast. The ammonia tanks have also been ruled out as a cause of the explosion.

Other details were also released, including the dispatcher log, which shows the fire was first reported at 7:33 p.m., and that first responders were on the scene at 7:35. “There’s heavy smoke coming out of one of the buildings behind the fertilizer, one of the grains here,” was the first on-site dispatch from a police officer at 7:35 pm. Just one minute later, that responder was asking for an emergency contact with West Fertilizer.

The first fire truck arrived six minutes after the initial call, and almost immediately requested mutual aid from another fire department. “This is fully involved, big time,” was the 7:40 dispatch. At 7:48, the plant manager for West Fertilizer was on the scene. The last transmission before the explosion comes at 7:51 p.m., when the West Fire Department refers to “73,000 gallons of water.”

The next transmission comes minutes later from a panicked firefighter after the blast. “We need every ambulance we can get this way,” the firefighter says. “A bomb just went off inside here. It’s pretty bad. We’ve got a lot of firemen down.”
Investigators are still trying to determine what caused that powerful explosion, and which of the structures initially caught fire. There were many other unanswered questions as well, including whether the fire was accidental or intentional, and whether lax enforcement of state and federal regulations or negligence on the part of West Fertilizer contributed to the tragedy.

Some 70 state and federal investigators were on the scene last week, with the State Fire Marshal and the Bureau of Alcohol, Tobacco, Firearms and Explosives acting as the lead agencies. The Chemical Safety Board (CSB) will also investigate, but was not yet at the site until the ATF completes its initial investigation.

West Fertilizer is owned by 83-year-old Donald R. Adair, a lifelong resident of West, who also owns Adair Grain Inc. at the same location. Adair bought the retail facility in 2004, but the business has been in operation in West since 1962. During those 50-plus years of operation, the town of West grew around and in close proximity to the fertilizer plant. Among the many structures damaged in the explosion were an apartment complex, a nursing home, and West Middle School.

Adair released a statement on April 19 in which he expressed “heartfelt sympathy for those affected and

Sulfur

Tampa: More than a week after Mosaic reached an agreement to increase prices $5/lt for the molten sulfur delivered to Tampa, PCS had not yet reached an agreement for second-quarter molten sulfur.

In the past, if one phosphate producer gets a lower price, the other will too. But that may not be the case this time. We could wind up with a range for molten sulfur.

Green Markets will not change the price index for molten sulfur to Tampa until both major buyers have reached agreements with all their major suppliers.

Refinery capacity operating rates were down 2.8 percent, to 83.5 percent from 86.3 percent last year at this time, according to the U.S. Department of Energy. The year before the rate was 84.7 percent, and the five-year average was 84.88 percent.

Vancouver: Sulfur dealers and traders were expected to go along with the $5/lt bump suppliers gained in Tampa molten sulfur, but that has yet to take effect, and no change was made in the price at Vancouver.

The market has tightened as a result of the Kennecott mine collapse in Utah (GM April 22, p. 11).

West Coast: Although the West Coast normally tracks the Vancouver market price, it was not expected to rise when Vancouver goes up $5/mt.

Benelux: The price for the first quarter was $195-$210/mt FOB. A new price should be available relatively soon.

ADNOC: The ADNOC price for April moved to $160/mt FOB, up $5/mt from the previous $155/mt FOB.

Potash

U.S. Gulf: Recent trades continued to be called $415-$420/st FOB for barges.

Eastern Cornbelt: Potash remained in the $450-$460/st range FOB most regional warehouses, but one Eastern Cornbelt source said the attitude from suppliers is “don’t buy before you talk to me.”

Western Cornbelt: Potash remained flat at $450-$460/st FOB most warehouses in the Western Cornbelt region.

Northern Plains: Granular potash pricing out of regional warehouses had reportedly slipped to $452-$455/st FOB, with delivered tons at $460-$480/st in the Dakotas.

Potash pricing to U.S customers FOB Saskatchewan mines was reported in the $420-$430/st range, depending on grade and producer.

Great Lakes: Sources quoted the potash market at $460-$467/st FOB warehouses in the Great Lakes region, with the low for red granular and the upper end for white granular tons.

Northeast: Potash pricing was quoted at $458/st FOB Baltimore.

Phosphates

Central Florida: A train wreck was the most exciting thing in Central Florida phosphate news last week.

A train pulling 61 railcars, most of which were filled with Mosaic Co.’s phosphate rock, partially derailed late on April 18, spilling the cargo of nine cars, according to The Ledger of Lakeland, Fla. The cause was not known.

Mosaic was apparently sending the rock for processing. The derailment involved 11 cars, but two did not overturn. The clean-up was still going the next day, and traffic had to detour without notice of signs. There were no injuries.

Mosaic earlier reached an agreement with its sulfur suppliers to pay $5/lt more for the molten sulfur it receives at Tampa (GM April 22, p. 10). However, late last week PCS still had not reached a deal with its suppliers for second-quarter molten sulfur, so the sulfur range was not changed.

The Central Florida DAP price range remained unchanged last week at $465-$520/st FOB, based on posted and asking prices. Mosaic’s list prices were $465/st FOB for rail and $480/st FOB for trucks, while CF Industries was posted at $520/st FOB. PCS Sales was selling at market prices out of Aurora and White Springs.

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

U.S. Gulf: The U.S. Army Corps of Engineers shut down locks on both the Mississippi and Illinois Rivers last week due to high water. That made it difficult for barge traffic, but most of the locks were scheduled to reopen relatively quickly.

Several barge vs. bridge incidents occurred last week. One happened in St. Louis County, where four loose barges struck a bridge, which was shut down, inspected, and reopened after no damage was found. The second happened in Caruthersville, Mo., where a barge hit an I-155 bridge. Again, the bridge was closed, inspected, and reopened after no damage was found.

Crop prices for grain products were mostly down again last week compared to the previous week, while wheat was mixed. Corn for May was pegged at $6.4525/bushel last week, falling from $6.475/bushel a week earlier. Corn for December 2013 was $5.3125/bushel, down from $5.42/bushel at last report, while corn for December 2014 was posted at $5.4075/bushel, down from $5.4575/bushel the previous week.

Soybeans for May were at $14.235/bushel, down from $14.27/bushel the previous week, while bean prices for November 2013 dropped to $12.0625/bushel from $12.195/bushel at last report. Soybeans for November 2014 were posted at $12.1525/bushel last week, down from $12.2225/bushel a week earlier.

Wheat for May was $7.0125/bushel, up from $6.933/bushel the previous week. Wheat for July 2013 decreased to $7.0375/bushel from $7.4325/bushel at last report, while wheat for July 2014 was listed at $7.47/bushel last week, up from $7.4325/bushel the previous week.

The NOLA DAP barge market showed a wide range last week, with sales of Moroccan light brown in the $420s/st FOB and domestic sales early in the week in the $460s/st FOB. Koch was selling the Moroccan.

Prices for MAP were harder to find, but it was agreed they were $20-$40/st FOB higher than the cheap DAP.

It seems unlikely that the top of the range will hold, with sources citing too much pressure to lower it.

The NOLA DAP barge price changed from the previous week’s range of $460-$470/st FOB to a wide $427-$465/st FOB last week, based on actual transactions. MAP barges were in the $463-$480/st FOB range, with the higher price for domestic product. Russian MAP was out of the market.

Eastern Cornbelt: DAP pricing had reportedly slipped to as low as $490-$495/st FOB Cincinnati and spot river locations in the Illinois market. The upper end of the range remained at $520/st FOB out of some inland warehouses in Ohio.

MAP was $10-$20/st higher than DAP, depend

Ammonium Sulfate

Eastern Cornbelt: Granular ammonium sulfate was steady at $385-$405/st FOB in the region, with the low in Illinois and the upper end in Indiana and Ohio on a spot basis.

Ammonium thiosulfate pricing in the Eastern Cornbelt was up from last report at $350-$365/st FOB regional terminals.

Western Cornbelt: Granular ammonium sulfate was pegged at $375-$400/st FOB in the Western Cornbelt. The ammonium thiosulfate market was quoted in a broad range at $335-$365/st FOB in the region, depending on location.

Northern Plains: Minnesota sources pegged the granular ammonium sulfate market at $370-$380/st FOB, down $5/st from last report, with delivered tons quoted at the $402/st level in North Dakota.

No current pricing quotes were reported for ammonium thiosulfate in the Northern Plains region.

Great Lakes: The granular ammonium sulfate market was quoted in a broad range at $385-$420/st FOB in the Great Lakes region, with the low in Wisconsin and the upper end in Michigan. Michigan sources quoted spot ammonium sulfate prices ranging from $405-$420/st FOB at mid-month, depending on location, with the upper end of the range FOB Webberville and Comstock Park.

The ammonium thiosulfate market remained at $350-$365/st FOB in the region.

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