All Posts from June 30, 2014

Nitrogen Solutions

Eastern Cornbelt, Great Lakes, Market Watch, Northeast, Northern Plains, U.S. Gulf, UAN, Western Cornbelt

U.S. Gulf: Quite a bit of business has reportedly been concluded in recent weeks as the NOLA market entered the fill state. However, sources said most sellers have now pulled their fill programs and have higher price ideas. The most recent trades were put in the $228-$240/st ($7.13-$7.50/unit) FOB range, with sellers now seeking $245-$250/st FOB for new business.

The last done vessel business continued to be called $250/mt CFR, with sellers seeking $260-$265/mt CFR for the next trade.

Eastern Cornbelt: Although CF had reportedly pulled its UAN fill program of the previous week (GM June 23, p. 8), regional sources reported last week that they were still able to book fill tons from other suppliers. Ohio sources quoted UAN-28 fill as low as $246-$247/st ($8.79-$8.82/unit) FOB Cincinnati, and Illinois sources pegged the common UAN-32 fill number at $285/st ($8.91/unit) FOB.

The UAN-28 market FOB Burns Harbor was reported at $260/st ($9.29/unit) for fill and $280/st ($10.00/unit) FOB for prompt, while prompt tons out of the Cincinnati market were quoted at $260-$265/st ($9.29-$9.46/unit) FOB last week.

Western Cornbelt: UAN-32 pricing in the Western Cornbelt covered a broad range last week, from a low of $285/st ($8.91/unit) FOB for summer fill offers to a high of $330/st ($10.31/unit) FOB for prompt tons, depending on location.

Northern Plains: Sources quoted the Twin Cities UAN-28 market at the $280/st ($10.00/unit) FOB level, down some $20-$40/st from last report. Delivered UAN-28 in North Dakota was reported in a broad range at $320-$340/st ($11.43-$12.14/unit), depending on location.

Extremely wet weather has delayed corn sidedressing in parts of the Northern Plains.

Great Lakes: UAN pricing in the Great Lakes region was down significantly from May levels, but sources reported a broad range of pricing, depending on location and whether the material was prompt or summer fill.

Michigan sources pegged the prompt UAN-28 market at $280-$285/st ($10.00-$10.18/unit) FOB, down roughly $30/st from last report, with fill offers reported in the $260-$265/st ($9.29-$9.46/unit) FOB range out of terminals in the state. “There is still sidedress to finish up if it would ever stop raining here,” said one Michigan contact.

The UAN-32 market in Wisconsin was quoted at the $307/st ($9.59/unit) FOB level for prompt tons, with summer fill offers reportedly on the table for as low as $285/st ($8.91/unit) FOB at some locations last week.

Northeast: The UAN-32 market was quoted at $288/st ($9.00/unit) FOB Baltimore, Md., for prompt tons last week, down slightly from early June pricing levels. Out of terminals in upstate New York, the UAN-32 market remained at $344/st ($10.75/unit) FOB.

Northeast sources reported spotty sidedressing and post-spraying activities in late June, but wet weather continued to cause delays in many areas.

CVR Partners LP – Management Brief

Management Briefs

CVR Partners LP, Sugar Land, Texas, announced on June 23 that Matt Green has been named vice president of marketing for the partnership’s general partner, CVR GP LLC, effective immediately. Based in Kansas City, Kan., Green will lead national marketing efforts for the company’s fertilizer products.

Green will report to Bill White, who was named executive vice president of marketing and operations for CVR GP, effective immediately. White will also be based in Kansas City, Kan., and will lead the partnership’s national marketing, operations, and transportation strategies. White will report to Mark Pytosh, president and CEO of CVR GP.

Green has 30 years of experience in the agribusiness industry, most recently serving as director of anhydrous ammonia at CF Industries Inc., Deerfield, Ill., where he was responsible for CF’s domestic and international marketing strategy, contract development, and product distribution for anhydrous ammonia. Prior to CF, Green was vice president and senior director of marketing development for Terra Environmental Technologies Inc. He also held several management positions for Terra Industries Inc., and various sales management positions at Agricultural Minerals Corporation LLC, and Agrico Chemical Company. Green holds a BS in agriculture from the University of Missouri.

White has more than 37 years of experience in the chemical industry. He spent the majority of his career serving in various management positions related to predecessor companies of CVR Partners, such as manager of Farmland’s product distribution system and plant manager at Farmland’s Pollock, La., and Enid, Okla., fertilizer plants. He also served as the general manager for EPCO Carbon Dioxide Products Inc.

White first joined Coffeyville Resources Nitrogen Fertilizers LLC, a wholly owned subsidiary of CVR Partners, in 2005 as the director of business development and logistics. He later served as CVR Partners’ vice president of marketing. In 2012, White was promoted to his most recent position of vice president of marketing, development, and logistics. He holds a BA in business from the University of Louisiana at Monroe, and currently serves on the board of directors for The Fertilizer Institute.

Growmark Inc. – Management Brief

Management Briefs

Jim Spradlin, Morton, Ill., has been named CEO of Growmark Inc., effective Sept.16, 2014. He replaces Jeff Solberg, who will retire in September.

Spradlin is a 1982 business administration and economics graduate of Illinois College, Jacksonville, Ill. He has held various positions within the Growmark System of cooperatives, including controller of Schuyler-Brown FS, regional administrative director, general manager of Piatt Service Co., general manager of Ag-Land FS, and region manager (Central Ill.), energy division manager, agronomy division manager, and vice president of agronomy for Growmark. Spradlin is one of five members of the Purdue University Center for Commercial Agriculture’s Industry Advisory Council. He serves on the board of directors for The Fertilizer Institute, and is a former local director of Rotary International.

Sulfur

Market Watch, Sulfur, Tampa, U.S. Gulf, Vancouver, West Coast

Tampa: Negotiations for a new third-quarter price of molten sulfur delivered to Tampa were underway, sources said, though upcoming holidays coupled with industry events may conspire to delay a settlement until the last week in July.

Speculation as to where the third-quarter price might land continued among industry watchers, with much of the conjecture settling in the neighborhood of either a flat rollover or a slight dip.

Large-scale sulfur consumers continued to report zero difficulty in procuring needed quantities, and despite U.S. refinery utilization falling below the five-year average in recent weeks, increased production from the summer drive-time season was said to keep the market flush with supply.

Operating rates for U.S. refineries rose for the week ending June 20, according to the U.S. Energy Information Administration. Total capacity utilized was put at 88.5 percent, a climb of 1.4 percent from the previous week’s 87.1 percent. Refineries ran at 90.2 percent during the same week in 2013, with the five-year average at 89.8 percent.

Molten sulfur delivered to Tampa was $133/lt for the second-quarter.

U.S. Gulf: U.S. suppliers quoted the current Gulf export market at $130-$140/mt FOB, but believed the next round of trade would be conducted in a range of $135-$145/mt FOB.

Vancouver: Syncrude continued to work out mechanical kinks at its newly reopened Alberta refinery, sources said, though the hiccups were described as minor and were unlikely to pose any long-term impediments to production.

Despite the hurdles, the facility was thought to be operating at nearly full capacity, or roughly 2,000 mt/d based on 2013 numbers, and was said to be considering melting stores of blocked sulfur to contribute to the molten market.

Sources called spot sales from Vancouver in a range of $140-$160/mt FOB, an increase from the previous week’s $135-$145/mt FOB.

Alberta levels were flat at a reported (-)$20-$80/mt.

West Coast: The California sulfur market was called $130-$140/mt FOB, an increase from the $125-$135/mt FOB quoted previously.

Sources reported keeping an eye on rising domestic levels in relation to the West Coast market, and speculated that prices could tick up further with the next round of business.

Benelux: The Benelux price of sulfur was $158-$172/mt for the second quarter. A new third-quarter price is expected in the coming weeks.

ADNOC: ADNOC sulfur for June was listed at $150/mt, up $5/mt from May levels.

Potash

Eastern Cornbelt, Great Lakes, Market Watch, Northeast, Northern Plains, Potash Muriate, U.S. Gulf, Western Cornbelt

U.S. Gulf: Potash barges continued to be called in tight supply, and most were putting them in the $360-$365/st FOB range. While buyers were still holding out for $355/st FOB, sellers were eyeing $370/st FOB.

Eastern Cornbelt: Sources quoted the potash market at a firm $390-$397/st FOB regional warehouses in the Eastern Cornbelt, with the low for red granular and the high for white granular tons.

Western Cornbelt: The potash market was quoted at $385-$390/st FOB in the Western Cornbelt in late June, depending on location.

Northern Plains: Minnesota sources quoted the granular potash market at $385-$390/st FOB, with delivered tons in North Dakota pegged in the $390-$400/st range. Potash pricing FOB Saskatchewan mines remained at $345/st for standard, $350/st for granular, and $357/st for soluble sales to U.S. customers.

Great Lakes: The potash market was pegged solidly in the $390-$397/st range FOB regional warehouses in the Great Lakes region, with the low for red and the upper end for white granular.

Northeast: The granular potash market was pegged at $380-$390/st FOB and roughly $400/st rail-DEL in the Northeast region. The low end of the FOB range was reported out of warehouses in western Pennsylvania.

Phosphates

Central Florida, China, Eastern Cornbelt, Great Lakes, India, Market Watch, Northeast, Northern Plains, Oceania, Pakistan, Phosphate Rock, U.S. Exports, U.S. Gulf, Western Cornbelt

Central Florida: Demand for prompt phosphates remained slight in the twilight of the spring season, though rail-loaded DAP was still said to be available from producers and resellers alike. Price erosion was thought to be minimal, with the market supported by steady prices in the NOLA market.

The Central Florida phosphate market was called $430-$440/st FOB for the week, unchanged from previous levels. MAP, thought by sources to be essentially unavailable, continued to be quoted at a $20/st FOB premium to DAP.

U.S. Gulf: Demand for prompt phosphate barges was light, sources said, and most of the industry focus had shifted forward to summer business. Mosaic’s posted price for prompt DAP was listed at $445/st FOB, though no sales were reported at that level as of June 26.

Sources put prompt Chinese material at $421-$422/st FOB, while domestic and Moroccan DAP traded in a $430-$440/st FOB range. MAP was quoted $20-$25/st FOB higher than DAP.

Sources were divided on the direction of the market. Some insisted on continued strength while others predicted tumbling prices, but most agreed that a considerable supply of imported product was en route for August/September delivery.

Some sources feared that such a large and sudden influx of supply would far outstrip demand and gut prices, possibly dropping levels as low as the $400s/st FOB. Buyers were said to be growing hesitant, and nervous sellers were “letting offers trickle down.”

For the week at hand, sources put September and October barges in the mid-$420s/st FOB, with July offers quoted at $430-$435/st FOB. Paper trading for September/October was called $419-$421/st FOB, and the MAP premium was put at $20-$25/st FOB for all timelines.

For many, truck sales made up the lion’s share of phosphate commerce conducted for the week, and though business wasn’t necessarily brisk, small quantities were moving.

Warehouse operators put prices at $475-$490/st FOB for prompt sales on the lower and mid-river markets, while $485-$510/st FOB was heard at upriver points. DAP sold from terminals for September and October shipment was quoted $10/st FOB below current levels.

Prices on the NOLA barge market were called $430-$440/st FOB based on most recent sales, unchanged from previous levels. MAP was put at a $20-$25/st FOB premium to DAP.

USDA placed 74 percent of the national corn crop in the good or excellent categories last week. The U.S. soybean crop was 95 percent planted and 90 percent emerged, with 72 percent of the crop rated as good or excellent. The winter wheat harvest was pegged at 33 percent complete nationally by June 22, with 30 percent of the crop rated as good or excellent and 44 percent falling in the poor or very poor categories.

As of 4 p.m. on June 26, corn and wheat prices on the futures market were down compared with the previous week, but soybeans were on the rise.

Corn contracts for July 2014 clocked in at $4.4275/bushel, down from the previous week’s $4.505/bushel. September 2014 corn had slipped to $4.39/bushel from the prior week’s $4.4425/bushel, while corn for December 2014 was $4.4325/bushel, down from $4.475/bushel the week before.

The July 2014 soybean price rose to $14.37/bushel from $14.2075/bushel a week earlier, while soybeans for August 2014 were put at $13.8175/bushel, up from the previous week’s $13.69/bushel. Soybeans for November 2014 were posted at $12.4425/bushel, an increase from $12.2725/bushel a week earlier.

Wheat for July 2014 was $5.8225/bushel, down from the previous week’s $5.935/bushel. September 2014 wheat had slipped to $5.8475/bushel from the prior week’s $6.025/bushel, while contracts for July 2015 wheat were listed at $6.4525/bushel, down from $6.5975/bushel the week before.

Ammonium Sulfate

Ammonium Sulfate, Eastern Cornbelt, Great Lakes, Market Watch, Northeast, Northern Plains, Western Cornbelt

Eastern Cornbelt: Granular ammonium sulfate was tagged at $290-$305/st FOB in the region, with the upper end quoted in the Ohio market and the low FOB Burns Harbor.

Ammonium thiosulfate was steady at $345-$360/st FOB in the Eastern Cornbelt, with the low again out of the Burns Harbor market and the upper end in Illinois on a spot basis.

Western Cornbelt: Granular ammonium sulfate was steady at $280-$300/st FOB in the Western Cornbelt.

Ammonium thiosulfate remained in the $320-$335/st FOB range in the region, depending on location.

Northern Plains: Granular ammonium sulfate was tagged at $300/st FOB and $305/st DEL for prompt tons in the Northern Plains, with reports of tight supply in some locations. No fill programs were circulating yet last week.

Ammonium thiosulfate remained at $330-$335/st FOB in the region, with delivered tons quoted at the $395/st level in North Dakota.

Great Lakes: The granular ammonium sulfate market was pegged at $290-$300/st FOB for prompt tons in the Great Lakes.

Ammonium thiosulfate remained at $345-$360/st FOB in the region, with the Webberville, Mich., market pegged at the $350/st FOB mark.

Northeast: The granular ammonium sulfate market was pegged at $300-$305/st DEL in the Northeast, with that range also reported on an FOB basis out of the East Liverpool market.

Southern States Cooperative – Management Brief

Management Briefs

Southern States Cooperative, Richmond, Va., on June 25 announced several management changes within its newly created Agronomy Division.

Effective immediately, Danny Dillon has been named vice president of agronomy technologies, and will head all efforts in the areas of precision agriculture, and all agronomy technology initiatives in seed, nutrients, and equipment. Dillon, a 38-year veteran at Southern States, has led the cooperative’s Crops Division since 2008, and most recently served in the procurement and distribution side of the Agronomy Division. He is a graduate of the University of Kentucky and is originally from Flemingsburg, Ky.

Replacing Dillon as vice president for agronomy procurement and distribution will be David Parker, who formerly served as director of fertilizer procurement and distribution. Parker has been with Southern States since 1980, serving in a number of capacities, including store manager and district manager in both Kentucky and North Carolina. Parker hails from Danville, Ky., and is a 1978 graduate of the University of Kentucky.

Southern States’ Senior Vice President for Agronomy Greg Adlich also announced that Jim Ebert has been tapped to lead the Agronomy Division’s efforts in seed and crop protectant procurement, and Keith Reid will become regional manager for the agronomy districts in North Carolina, South Carolina, Georgia, and Florida.

Ebert has been with Southern States since 1987, first working in retail management in Virginia before becoming district manager on the Eastern Shore of Virginia and Maryland in 1998. He has served as regional manager in both the cooperative’s Retail and Agronomy Divisions since 2002, and is a graduate of Penn State University.

Reid is a 25-year veteran of Southern States, with a wide range of corporate assignments in both the accounting and feed divisions before moving to crop protectants in 2003. He became manager of seed and crop protectants in 2010 and director of agronomy procurement for seed and crop protectants in 2013. Reid is a graduate of the University of Richmond.

Southern States is one of the nation’s largest agricultural cooperatives, with more than 200,000 farmer-members and some 1,200 retail outlets in 23 states. It created its Agronomy Division in 2013 to “streamline the flow of crop inputs and ramp up the delivery of precision agriculture services to the farm.”

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