Regina-Viterra Inc. recently told analysts that in addition to a good second quarter for its fertilizer business (GM June 15, p. 13), the company is also picking up market share. Viterra Agri Products Senior Vice President Doug Wonnacott told analysts that the company share in the entire Western Canada region is about 30-35 percent, and that it expects it will pick up a couple of points. While nitrogen volumes have been relatively flat through the first half, he expects the company to see a 100,000 mt upside versus year-ago levels as the company looks toward the end of the year. Responding to questions about severe phosphate and potash downturns in the U.S. Corn Belt, he reminded analysts that a different product mix is used in Western Canada. While he expects phosphate to be off 10-15 percent and potash by up to 40 percent, he noted that Viterra’s product mix is 70 percent nitrogen, 20 percent phosphate, and only 10 percent potash. As a result, the impact to Viterra of less phosphate and potash would not be so substantial. As for pricing, Wonnacott said in Western Canada the spring season has finished up with relatively stable pricing. However, he said it is a different matter on wholesale pricing, which has been reflecting a downward trend on urea and phosphates as has been seen on a global basis, with potash remaining reasonably stable. Wonnacott said Viterra does not expect any future write-downs on fertilizer for the balance of the year. A fertilizer inventory write-down of C$28.1 million helped move Viterra into the loss column for the first quarter ending Jan. 31, 2009 (GM March 16). On inventories, he expects the company to be effectively empty by the end of June. Due to a late spring, Wonnacott said he expects the glyphosate market to be down about 30 percent; however, he expects this will be offset by increases for grass and broadleaf products.
U.S. Gulf/Tampa: Negotiations were ongoing last week for the Tampa July business, with sources saying the deal could come at any time. The only question was would it be before deadline or the next week. Lower price ideas out of Yuzhnyy and Trinidad were putting pressure on sellers. Sources said the price range being discussed was somewhere below $200/mt DEL, with most honing in on the $175-$185/mt DEL range.
Over at NOLA, sources said the news that Terra was shutting down Donaldsonville was evidence of lower prices. Why produce, if it is cheaper to import? Even with low gas prices, sources said NOLA production would be hard pressed to compete with imports at $175/mt DEL. With a slump in industrial demand and the end of the spring season, sources said the last done numbers of $255/st could not stand. They suggested sub-$200/st FOB as more reasonable.
Eastern Cornbelt: Sidedress movement of ammonia and UAN was slowing down in the region. The ammonia market was quoted at $320-$340/st FOB in Illinois, with the low for spot tons and the high for fall prepay. The upper end of the regional range was pegged at the $345/st FOB level in Indiana for fill tons.
Western Cornbelt: The ammonia market was pegged at $300-$320/st FOB regional terminals last week, with reports from one Iowa source of fall prepay being offered at the $335/st FOB level. Forward contract ammonia for July was referenced by one supplier at $320/st FOB in Nebraska, $320-$325/st FOB in Iowa, and $345/st FOB Palmyra, Mo.
Northern Plains: One source said spring ammonia volumes were down from normal, but activity was heavy during a spring planting season shortened by wet weather. Cash market ammonia was reported at the $350/st FOB level in Minnesota, give or take, with one supplier referencing forward contract ammonia for July at $350/st FOB Pine Bend, Minn., and $355/st FOB Grand Forks and Velva, N.D., with $5/st per month increases slated for August and September.
Delivered ammonia was pegged at $365-$375/st in North Dakota to the dealer, with the low for summer fill tons. Fall prepay ammonia was reportedly referenced from several suppliers at the $385/st DEL level last week. Dakota Gasification’s ammonia plant in Beulah, N.D., was down during the month of June for a turnaround, with plans to restart in July.
Effective June 15, Agrium’s anhydrous ammonia postings moved to $405/st FOB and $425/st DEL in the Leal, Velva, Grand Forks, and Beulah sales area in North Dakota.
Black Sea: Word keeps coming out of more plants closing or ready to close. The cost of inputs continues to plague the producers, while the international market languishes below $200/mt FOB.
Sources now say the situation might get worse as Russia and Ukraine appear ready to once again do battle over the price of natural gas. Media reports say Ukraine President Viktor Yushchenko wants the gas agreement with Russia to be revised. He is particularly upset with potential penalties Ukraine will have to pay if it buys less gas than laid out in the contract. He said that without the review of gas transit fees, Ukraine could lose $2.5 billion in 2009.
In response, Russian gas giant Gazprom said Ukraine has no basis for its request and Gazprom will expect the contracts to be paid and honored in a timely manner.
Yushchenko said the potential penalty for the first quarter of 2009 could be as much as $1.5 billion, and nearly $4 billion for the second quarter. The penalties will be levied against Ukraine for gas it ordered last year but has yet to use.
The last time the two countries got into a spat over gas prices and supplies, Russia turned off the tap in January. The action not only forced Ukrainian plants to shut down, but also affected most of Europe, which gets it gas through pipelines that traverse Ukraine.
The European Community is worried that a similar shutdown could occur again, and has urged both sides to resolve their differences quickly.
Adding to the tension, Russia has been suggesting that Ukraine is cash-strapped and unable to pay its bills on time.
Ukraine’s energy envoy told the Interfax news service that his country expects a full apology from Gazprom and the Russian government once they make full payment.
Russian President Dmitry Medvedev told Interfax there was no reason for Ukraine to take offence. “Our Ukrainian partners took offence because Russia suggested they were unable or unwilling to make payment,” Medvedev said in St Petersburg. “Why should they take offence? Let them pay the money and everything will be all right.”
Middle East: Fertil remains down as it converts its prilled urea operation to granular. For now, that means it is out of the ammonia market as well. Sources report steady demand and supply in the area is keeping the price at an even keel.
UREA
U.S. Gulf: Urea barges remained stable last week as sources reported the market remaining within the $240-$245/st FOB range.
Eastern Cornbelt: The urea market remained at $275-$285/st FOB regional terminals for prompt tons, with the low FOB river terminals.
Western Cornbelt: Granular urea was steady at $270-$280/st FOB regional terminals to the dealer.
Northern Plains: The granular urea market was quoted at $270-$275/st FOB the Twin Cities and out of North Dakota warehouses. Delivered urea was pegged at the $270-$280/st level in North Dakota. Forward contract pricing for July was referenced at $280/st FOB Pine Bend and $295/st DEL in North Dakota and northern Minnesota.
Effective June 15, Agrium’s granular urea postings moved to $310/st FOB Marion, S.D., and out of North Dakota terminals at Alton, Carrington, Colfax, Scranton, and Grand Forks. Agrium’s rail-delivered urea postings moved on that date to $315/st in Minnesota, Wisconsin, and the Dakotas.
Northeast: Sources reported limited supplies of granular urea, with several locations out of product. The dealer market was pegged at $310/st FOB Philadelphia, reflecting a slight increase from last report. A Pennsylvania source pegged the delivered urea market at $323/st, which he said backs up to roughly $308/st FOB for the last done business.
India: Sources say MMTC is continuing talks with traders and producers hoping to get as much as 500,000 mt out of the tender that closed June 17. The buying house immediately took 225,000 mt from Helm and Middle East producers. It later tentatively accepted the 150,000 mt Helm offered as an option. And late last week it accepted a cargo of 15-20,000 mt from Swiss Singapore of Iranian urea.
Reportedly, MMTC has been leaning heavily on the Middle East suppliers to offer more tons at the same $260-$261/mt FOB range. The producers seem to be pushing back just as hard.
Sources say the Middle East producers – especially Sabic – are under no pressure to lower prices or provide more material at prices they see as too low already.
Some traders reportedly walked away from the talks when the Indian representatives refused to raise their pricing ideas.
Talks should continue into this week.
Sources say the Indians may be holding firm to their pricing ideas because they expect to see more low-cost material entering the market after July 1, when China reduces its export tariff from 110 percent to 10 percent. The announcement last week that China extended the period of the lower tax rate through Sept. 15 added fuel to the speculation that Chinese urea could head offshore.
Pakistan: Industry sources say Pakistan really needs the urea it is asking for, but the way it is going about the asking has some wondering if politics is trumping practicality. In just one week, TCP changed one tender to close early and issued two more to close in the first half of July. The total tonnage being asked for in the tenders is 135,000 mt.
The tenders were called after pressure started from political figures, who claimed Pakistan is more than 300,000 mt short of the urea needed for the upcoming application season.
Industry watchers said while the stockpiles were indeed lower than expected this time of year, there was more than enough urea on hand to start the season and to maintain applications for a while. Eventually, sources say, TCP would have to buy more as the season progressed.
Sources were arguing that TCP tried to hold off making any major moves on urea while rumors of a tender from India flooded the marketplace.
One trader noted that if Pakistan asked for 300,000 mt when India was clearly ready to buy 500,000 mt, the market price would have shot upward dramatically, only to plummet much lower when the buying was done.
Sources figure the current tenders are just vehicles to get multi-ton offers.
Observers speculate that reasonably-priced offers into the tenders will come to a few hundred thousand tons. TCP would then be in a position to buy more than the 50,000 mt or 35,000 mt called for in the tenders.
The bottom line is that Pakistan needs the 300,000 mt. How TCP will secure the tons is the big question.
Media reports out of Pakistan point to financial woes for the import agency.
The finance minister reportedly called in representatives of the country’s commercial banks to pressure them to issue and open letters of credit for urea purchases.
The problem first became known when TCP could not pay for the 260,000 mt it awarded in a previous tender because the banks would not open the LCs. The State Bank said TCP had overdrawn its account limit of Rs110 billion when it issued the awards.
The government is concerned enough about the potential shortage of urea that it is authorizing private buyers to import up to 300,000 mt in the next couple of months.
The government expects it will need 2.9 million mt of urea during kharif season, with 2.5 million mt of that from local production.
China: Beijing central planners changed the export duty tariffs. As previously announced, the duty on urea will drop to 10 percent July 1 from the current 110 percent. The period for the lower rate, however, will be extended through Sept.15. The extra 15 days of lower tax rate may be enough to ease the pressure on the producers, who are facing growing stockpiles with no domestic buyers, without causing a major run on the urea reserves to the international market.
At present, sources peg the Chinese prilled market at $260/mt FOB and granular at $265/mt FOB. The prilled rate is just at the margins for being competitive into India. The granular rate is already good enough for some exports.
Sources say a cargo of Chinese granular urea was purchased for a U.S. West Coast buyer at $265/mt FOB.
The extension of the lower export rate appears to have prompted India and Pakistan – two major buyers – to rethink their buying strategy. Both countries need urea, but now seem willing to hold off a week or so on making major buying decisions to see what kind of price the Chinese producers will accept.
Traders are testing the waters throughout China looking for a deal.
Sources report that so far no producer has nibbled at any of the bids. One trader added that producers are not even talking about pre-positioning tons near ports just in case a deal is struck.
The Chinese government has been walking a fine line between trying to keep the urea plants running and healthy with minimal direct national financial support and keeping farmers happy with inexpensive urea.
When the government did not restrict the export of urea, domestic prices shot up to meet the much higher international price and local stockpiles dwindled to dangerously low levels.
After duties of more than 100 percent were imposed the domestic stockpiles rose, but soon the price became close to the break-even point for many small- and medium-sized producers.
These producers threatened to shut down unless the price went up or the government supplied direct subsidies to the factories. The central planners in Beijing were reluctant to do either. The compromise was to institute a series of on- and off-season tariffs. When local demand was high, the export tariff was high. And now that the country is entering an offseason, the tariffs are low.
Unfortunately for the producers, the international market has also dropped. Now Chinese urea needs to come down into the low $250s/mt FOB to be seriously competitive in the few remaining major markets such as India, Pakistan, and Bangladesh.
Black Sea: Producers want to dig in their heels on lower prices, but the lack of new business is making their position hard to defend. Sources say last week showed practically no interest in tons from the area. Buying to cover the old IPL tender is done, and nothing is online for the current MMTC tender.
Observers say some interest could be coming soon from South America, but it will not be enough to move the market unless India or Pakistan also step up.
Industry watchers say the bottom of the market has dropped to $230/mt FOB, but the range has narrowed with a top price at $235/mt FOB.
Middle East: Producers report being in good shape into July. Orders from India and Pakistan, combined with smaller purchases from other buyers, are keeping inventories under control.
One of the positive factors for those trying to control a price slide is the conversion from prills to granular Fertil is undertaking. The plant is expected to be out of operation for another month or so.
Prices, set in the MMTC tender at $260-$261/mt FOB, remain steady.
Sources say producers could easily argue that any new deals will have to start at $265/mt. One trader said producers would argue for more, but in the current market there is no place to sell urea at any higher levels than the current price.
The big danger to the producers’ plan to raise the price is the threat of Chinese urea that could enter the market. Everyone seems to be watching what happens to the price of urea in China.
Indonesia: Industry watchers expect to see PIM announce a major selling tender soon. Sources report that stockpiles are building up, but the government first wants to make sure domestic demand is fully covered before any urea is exported. Observers say the tender could be called as early as this week, but many figure the first full week of July is more likely.
NITROGEN SOLUTIONS
U.S. Gulf: Several sources last week indicated that a lot of product was sold in the $120-$125/st FOB range, and that inventories have been brought back in shape. As a result, sellers are now quoting $127-$130/st FOB for the next round of business.
Eastern Cornbelt: Sources continued to report soft UAN pricing as sidedress demand wanes. The summer fill market was well underway for shipments completed now through August or September, but several sources said most buyers were moving cautiously and booking smaller volumes. “It’s not a typical fill where guys are buying 100 percent,” said one source. “Most are stepping in at about 20 percent. It’s active, but we’re not seeing one big purchase. It’s more frequent smaller ones.”
Sources pegged the upper end of the UAN market at $176/st ($5.50/unit) FOB terminals for prompt sidedress tons. Fill UAN was quoted in the $155-$170/st ($4.85-$5.31/unit) FOB range, with the low end reportedly out of regional production points. One supplier was referencing forward contract UAN-32 for July-August at $168-$177.60/st ($5.25-$5.55/unit) FOB regional terminals.
Western Cornbelt: UAN pricing continued to fall. The dealer market was quoted at $4.85-$5.50/unit FOB regional terminals, with the low for fill tons on a spot basis, and the upper end reflecting prompt loads for any remaining sidedress business.
Northern Plains: The UAN market was quoted at $5.60-$6.25/unit FOB terminals in the region, down significantly from last report, with the low for summer fill tons and the upper end for prompt, cash market sales. Delivered UAN-28 in North Dakota was pegged at $190-$195/st ($6.79-$6.96/unit).
Northeast: The UAN-30 market was pegged at $180-$187/st ($6.00-$6.23/unit) FOB in the region, with the dealer market at Baltimore pegged at the $185/st ($6.17/unit) FOB level for spot loads. UAN-32 was referenced at $212/st ($6.63/unit) FOB terminals in upstate New York for prompt spot tons. Delaware sources quoted the UAN-32 market at $197/st ($6.16/unit) truck-DEL from Chesapeake, Va., where the FOB market was tagged as low as $174.40/st ($5.45/unit).
AMMONIUM NITRATE
Western Cornbelt: Ammonium nitrate was unchanged at $265-$270/st FOB in the region.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate was steady at $225-$235/st FOB, with rail-delivered sulfate referenced at the $225/st level in the region.
Western Cornbelt: Granular ammonium sulfate pricing remained at $225-$245/st FOB to the dealer.
Northern Plains: Granular ammonium sulfate was tagged at $225/st FOB or rail-DEL in the region.
Northeast: Granular ammonium sulfate was reported at $225/st FOB or DEL in the region, down slightly from last report.
PHOSPHATES
Central Florida: Although no one was swamped with business out of Central Florida last week, both truck and rail deals were concluded as the price settled near the low end of the previous week’s range. As the market becomes increasingly static, consumers appeared to be more comfortable with the prospect of putting in fill for fall.
As the summer churns onward, the prospect of production curtailments seems to have dimmed. Producers have been able to find sufficient export demand to keep inventories essentially in check. One signal of continued production has been the steady supply of sulfur producers have sought, as opposed to reducing supply as they approach curtailment preparations.
Normally, truck sales bring a premium price for phosphate, but last week both truck and railcar transactions were done in the same range. The Central Florida DAP price range was unchanged last week at $250-$255/st FOB. PCS Sales had no published price. Mosaic had no list prices for Central Florida, but was making sales within the current price range. CF’s price was $250/st FOB for DAP and $10/st FOB higher for MAP. Agrifos was no longer posting prices, but was charging based on market conditions.
U.S. Gulf: A source pointed out that before the Southwestern Conference at San Antonio in July traders normally purchase a few barges to make deals during the affair, but transactions have been so low that might be a rarity this year. Producers, of course, would be in a different position.
Few NOLA DAP barges were available last week and most sales were primarily by producers, although all were around the previous week’s high end of the price range.
“It’s slow,” said one. Another added, “The summer doldrums came a little early this year.” Early, it seemed, was in the spring.
Still, many dealers were making efforts to build inventories, primarily because phosphate prices have been lower and steady for some time, which means they would be less likely to get caught holding the high-priced bag, if the cost was to take a sudden drop. That appeared unlikely.
In Oklahoma, where temperatures were 100 or better most of last week, the heat and lack of rain was removing water from the soil. Still, farmers there were cutting the wheat crop and preparing to plant soybeans, which do not require massive amounts of phosphate.
The price of corn was headed south last week, but was still sufficient to allow farmers to fertilize and make a decent profit – all of which was good for the industry.
The NOLA DAP barge price range narrowed last week to $259-$260/st FOB. Both Mosaic and CF had a $10/st FOB additional charge for MAP. Mosaic was scheduled to meet last Friday and decide whether it would hike its prices for the Gulf market.
Eastern Cornbelt: The DAP market was quoted at $290-$310/st FOB regional warehouses, with the low for summer fill tons and upper end reflecting prompt pull. One source said reference levels for summer fill had firmed to the $300/st FOB level from some suppliers last week. One supplier was posting forward contract DAP for July at $300/st FOB Peoria, Ill., and $305/st FOB Cincinnati.
MAP was $10/st higher. 10-34-0 was pegged at $425-$450/st FOB most regional shipping points.
Western Cornbelt: DAP was tagged at $285-$310/st FOB warehouses to the dealer, with the low for summer fill tons. MAP was $10/st higher than DAP. 10-34-0 pricing remained at $400-$450/st FOB in the region.
Agrium on June 25 released updated phosphoric acid postings for the Midwest. Effective July 1, postings for super phosphoric acid (SPA) and merchant grade acid (MGA) will move to $705/st rail-DEL in Iowa, Missouri, Nebraska, Kansas, Colorado, Oklahoma, New Mexico, and Texas. Agrium’s postings will firm to $730/st rail-DEL in August. Last week’s pricing announcement updates an earlier list from the company that had phos acid postings moving to $635/st DEL in July and $660/st DEL in August.
Northern Plains: DAP was pegged at $305-$315/st FOB in the region, with MAP roughly $10/st higher. Delivered MAP in North Dakota was reported at the $350/st level. 10-34-0 pricing had dropped dramatically, with North Dakota sources quoting the market at $350/st FOB and $365/st DEL last week.
Agrium reposted its phos acid prices last week. Effective July 1, the company’s SPA and MGA postings will move to $705/st rail-DEL in Minnesota, Wyoming, and the Dakotas, instead of to $635/st DEL as was originally announced.
Northeast: MAP was pegged in a broad range at $315-$370/st FOB, with the low quoted by Pennsylvania sources for summer fill and the upper end quoted in New York for spot market tons. DAP was roughly $10/st less than MAP, with one source quoting the spot market for DAP at the $365/st FOB level in Pennsylvania. 10-34-0 pricing had reportedly fallen to $650/st FOB the tank in upstate New York, but sources reported few sales to test the market.
Western U.S.: Simplot announced new dry phosphate postings, effective June 23. For western and central Montana, Wyoming, and the west slope of Colorado, DAP and MAP postings moved to $345/st DEL, and 16-20-0 to $255/st DEL. Simplot’s postings for dry phosphate products with the Avail® additive in that region moved on June 23 to $428/st DEL for 11-52-0 and $338/st DEL for 16-20-0.
Simplot’s postings in eastern Montana moved on June 23 to $355/st DEL for DAP and MAP, $260/st DEL for 16-20-0, $438/st DEL for 11-52-0 with Avail®, and $343/st DEL for 16-20-0 with Avail®.
For Washington, Oregon, and the Idaho panhandle, Simplot’s postings moved to $355/st DEL for DAP and MAP from Pocatello, and $360/st DEL from Hedges, Wash. 16-20-0 postings moved to $260/st DEL from Pocatello and $265/st DEL from Hedges. Simplot’s postings for dry phosphate products with Avail® in that region moved on June 23 to $443/st DEL for MAP from Hedges, and $348/st DEL for 16-20-0 from Hedges. 0-45-0 with Avail® moved to $383/st FOB Pocatello and $398/st FOB Hedges. The company’s postings FOB Hopmere, Ore., moved to $350/st FOB for MAP and $255/st FOB for 16-20-0.
For the rest of Idaho and Utah, Simplot’s postings moved on June 23 to $350/st DEL for DAP and MAP, $255/st DEL for 16-20-0, $433/st DEL for 11-52-0 with Avail®, and $338/st DEL for 16-20-0 with Avail®.
In Nevada, Simplot’s postings moved to $355/st DEL for DAP and MAP, $260/st DEL for 16-20-0, $438/st DEL for 11-52-0 with Avail®, and $343/st DEL for 16-20-0 with Avail®.
In California, Simplot’s postings moved on June 23 to $360/st DEL or FOB warehouses for DAP and MAP; 16-20-0 moved to $265-$272/st FOB, and $265/st rail-DEL; and 0-45-0 moved to $388/st FOB or rail-DEL.
Agrium also announced new postings last week, updating its phosphoric acid prices for July 1 to $705/st rail-DEL for both SPA and MGA in Arizona, California, Idaho, Montana, Nevada, Oregon, Utah, and Washington. Postings will firm to $730/st rail-DEL in those states effective Aug. 1.
U.S. Export: PhosChem made a sale of 6,000 mt of MAP into Central America at $285/mt FOB.
Outside of India, which always seems to be in the market, Latin America was doing more tire kicking than the rest of the world. Brazil, Argentina, and Central America were cited most frequently.
The export DAP price range last week was $281-$285/mt FOB, which was unchanged from the previous week. Expect prices to rise slowly in the coming weeks.
Pakistan: Fauji Fertilizer issued an inquiry to their prequalified bidders for the import of 30-40,000 mt of DAP for shipment by the first week of September. Offers are to be submitted by July 7, with validity up to July 17. The country expects it will need 544,000 mt of DAP during the kharif season.
POTASH
Eastern Cornbelt: Potash remained at $590-$650/st FOB warehouses from brokers or resellers, depending on grade and location, with no new sales reported to test the market.
Western Cornbelt: The dealer market for potash was reported at $585-$635/st FOB regional warehouses for brokered tons, depending on grade and location.
Northern Plains: Producer reference levels for potash FOB Saskatchewan mines remained at $767-$780/st, depending on grade. Delivered potash in North Dakota was pegged at the $755/st level from secondary suppliers, but sources reported no new sales to test the market.
Northeast: Delivered potash was pegged at $655-$725/st in the region from secondary suppliers, depending on grade and location. Out of warehouse locations in western Pennsylvania, sources tagged the market at the $635/st FOB level from brokers or resellers.
SULFUR
Tampa: New prices for third quarter sulfur for Tampa were due this week, July 1, but no negotiations had begun. The second quarter turned out to be pretty ho-hum, because there was no significant change in either supply or demand.
The threatened phosphate curtailments never materialized, and supply and demand settled into a routine during the past three months, which was welcome after the dramatic and expensive run-up in prices and the nosedive that followed. Still, with a delivered price of zero, there was little going on in the industry to push prices either up or down. If a change does result from upcoming talks, it will be small and most likely a bit up.
Shipments of prill from the Gulf Coast were the bright spot in June, but little was going on in the way of new spot deals for molten sulfur.
Otherwise, refineries were running about normal and no transportation issues surfaced.
Vancouver: A source mentioned that Canada would probably send an increased quantity of sulfur by railcar into the U. S. this year compared to last year. However, that will only take the deliveries up to around a normal year.
MARKET NOTES
Poland: The government has signed a decree for the construction of a liquid gas terminal at Swinoujscie on the Baltic Sea, just a few miles from the German frontier. Construction is to begin next year and will be financed by the government and the European Union. The new port will benefit the nearby Police fertilizer plant. The government plans to sign a 20-year agreement with Qatar to supply the new terminal.
To shave debt, the government is once again looking at selling two of its fertilizer plants to foreign firms, most likely German chemical concerns.
Kelvin Ayers will be joining Wilbur-Ellis Co. in July to take the position of western region fertilizer director. His responsibilities will be to manage fertilizer purchasing and procurement for the two western business units of Wilbur-Ellis, California and Pacific Intermountain. He is leaving Agrium U.S., where he has held various positions for the past 26 years. He will remain in the Denver area and will report to Gene Gauss, vice president, fertilizer and nutrition, for Wilbur-Ellis.
Athabasca Potash Inc. (API) said June 25 that Dawn Zhou, president and CEO of the corporation, has been removed from her executive positions with the corporation. It said Ms. Zhou remains a director of the corporation. The company said Zhou’s entrepreneurial expertise and experience in geotechnical matters surrounding exploration was key in the formation and early development of API. However, it said API has now reached a stage where the skills required of its CEO, in addition to familiarity with potash and the related chemicals processing industry, must include mining project finance and development, and building completion and operations experience. A new CEO will be sought who brings to the corporation strong management and administrative skills required from an internal governance perspective, as well as externally with respect to the marketplace.
The API board has established a special executive committee that will be responsible for the general exercise of powers and authority of the board in managing the business. It will also manage the transition process with respect to search and retention of a new CEO. The committee consists of three directors – J.G. (Jim) Gardiner, who will act as chairman; Leo Bingleman, and John King Burns. Gardiner is the former president and CEO of Fording Canadian Coal Trust; Bingleman is chairman of the corporation’s audit committee and has 25 years experience as a finance executive in the mining industry. King Burns, managing director of NuCoal Energy Corp., a Saskatchewan based energy company, will continue as interim chairman of the board.
The committee expects to work closely with the corporation’s Chief Operating Officer, Terry Walbaum, in advancing the preliminary feasibility study with respect to its Burr Project, which the board continues to believe has the potential to be developed as a low cost conventional potash mine.
BASF Crop Protection announced the appointment of Paul Rea to director, U.S. Crop Business, effective July 1. The announcement was made by Rea’s predecessor, Nevin McDougall, who was promoted to group vice president of BASF North America Crop Protection in February. Rea most recently served as director of BASF Specialty Products business within BASF North America Crop Protection, where he led the December 2008 acquisition of Whitmire Micro-Gen to form BASF Pest Control Solutions. Prior to that post, Rea held various global and regional marketing positions for BASF North America. He joined the company in 2001 as a national sales manager at BASF Australia, Ltd., in Sydney. Prior to joining BASF, Rea served as national product manager and director of Graintrust Venture for Combined Rural Traders in Sydney. In his new role, Rea will be responsible for all aspects of the U.S. Crop commercial business, and will spearhead initiatives to deepen BASF’s customer relationships.
Washington-The recent dust-up over First Lady Michelle Obama’s organic garden has continued as pesticide groups have entered the frey and organic proponents have stepped up their support. “Pardon the metaphor,” said a recent article in the liberal blog dailykos, “but by planting an organic garden, Michelle Obama acted like Toto, pulling back the curtain to reveal the little man pretending to be the almighty wizard. That man – or men – behind the curtain are the biotech, pesticide, and fertilizer industries, who desperately want the American people to believe that they are absolutely necessary to prevent our starvation.” The blog article entitled “You’ve been told a lie,” which said it is a lie, among other things, to say organics can never feed the world and that pesticides/fertilizers/biotech are needed to feed the world. The article cited a 2007 study, “Organic Agriculture and the Global Food Supply,” which said organics can do as good a job as synthetics. TFI Vice President of Scientific Programs Bill Herz told Green Markets last week that the study is flawed, that in many cases the products being called organic are not. And a larger point, noted Herz, which has been suggested in some of these articles, is the erroneous assumption that no nutrients inputs are needed at all. If you want high yields, you need nutrient inputs, he said. TFI Vice President of Public Affairs Kathy Mathers added that saying a product is organic does not mean it is environmentally friendly, noting that manure suffers from volatilization. Mathers said TFI is not one of the men behind the curtain. Back when Mrs. Obama’s garden was planted (GM March 30) Nutrients for Life President Ford West sent her a letter pointing out that all fertilizers are good – organic and synthetic. Mathers reiterated that point last week, saying TFI welcomes everyone to the table, both synthetic and organic. In the meantime, Michelle Obama’s gardening has spread across the Atlantic as she and Queen Elizabeth are now sharing garden tips and the Queen has authorized an organic garden for Buckingham Palace, the first time vegetables have been grown there since World War II.
Tokyo-Mitsubishi Chemical Corp. recently reported that it has decided to withdraw from the caprolactum and styrene monomer businesses in the course of restructuring its petrochemicals businesses. It plans to shut down caprolactum production (60,000 mt/y) at its Fukosaki plant in March 2010, and styrene monomer production in Kashimi by March 2011.
Washington-House Speaker Nancy Pelosi has scheduled a vote for Friday, June 26, on the Waxman-Markey climate-energy bill, and agriculture interests have been stepping up pressure to exert their influence on the final product. House Energy and Commerce Committee Chairman Henry Waxman (D-Calif.) said June 23 that he had reached an agreement with Agriculture Committee Chairman Collin Peterson (D-Minn.) allowing the Agriculture Department to oversee farm carbon sequestration initiatives instead of the Environmental Protection Agency. The compromise also specified that agriculture will not be required to reduce greenhouse gas emissions under the bill. The Fertilizer Institute President Ford B. West testified June 11 before the House Agriculture Committee at a hearing held to examine the Waxman-Markey bill, and once again took aim at the bill’s cap and trade language. “The fertilizer industry has gone to great lengths to advocate environmental stewardship,” West said in his testimony, highlighting greater natural gas efficiency in the production of ammonia and related reductions in GHG emissions. West said that in order for the domestic fertilizer industry to remain competitive under the proposed cap and trade policy in the Waxman-Markey bill, however, the industry will need to achieve even greater efficiencies. “While our industry is committed to additional energy efficiency projects, there will come a point where, due to the constraints of chemistry, the U.S. fertilizer industry will not be able to achieve additional efficiency gains,” he said. Noting that the U.S. nitrogen industry has closed 26 nitrogen fertilizer production facilities since 2000 due primarily to the high cost of natural gas, West cautioned that the remaining domestic nitrogen production cannot stay operational through any transition period of a cap and trade system where utilities switch to natural gas and fertilizer producers are forced to buy emission credits on the open market. “What Congress needs to understand is that this cap and trade proposal may place our industry at a serious competitive disadvantage compared to global fertilizer production and could force the domestic fertilizer industry overseas to countries that have no carbon reduction policies in place,” he said. “Congress must tread cautiously and consider the fact that without dramatic changes, the current climate change bill will render the U.S. nitrogen industry uncompetitive and result in a loss for the economy and for the cause of reducing CO2 emissions.”
Lumber Bridge, N.C.-A high-pressure line that ruptured during maintenance is being blamed for the ammonia release June 20 at the Mountaire Farms poultry processing plant here that killed one person and injured at least four. The victim was identified as a company mechanic who may have been working on the system at the time. One worker was in critical condition last week at a burn center in Chapel Hill, and another was still hospitalized in nearby Lumberton. Two were treated and released from the same hospital. As many as 40 people were evacuated because of concerns about the gas causing burning and swelling of the air passages in the nose, throat, and lungs. No one was available to speak for the company, but reports were that the plant, which employs about 2,500, reopened early last week after undergoing an inspection.
Vancouver-Lara Exploration Ltd. said that it has been granted potash exploration licenses totaling approximately 14,000 hectares in Sergipe State, northeast Brazil. It says the claims are adjacent to and cover the extensions of the potash-bearing sedimentary basins of Vale’s Taquari-Vassouras mine, which produced 607,000 mt of potash in 2008. These basins have been explored extensively for oil and gas in the past, and a database of seismic surveys and exploration drilling is available through the Brazilian National Petroleum Agency. Lara plans to access and review the available exploration data in the coming months. Brazil is a major consumer of potash, mostly as a feedstock for fertilizers. Taquari-Vassouras is the only operating potash mine in Brazil, which currently imports 90 percent of its potash needs. The exploration licenses are held through Lara Alianca Ltda., a Brazilian company owned 100 percent by Lara Alliance BVI Ltd., which is in turn owned 50 percent by Lara and 50 percent by Sprott Resource Corp. Lara says it is a well-funded prospect generator with a multi-commodity exploration portfolio focused on Brazil, but with significant holdings in Colombia and Peru. Lara’s common shares trade on the TSX Venture Exchange under the symbol LRA.
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