All Posts from September 6, 2017

CF Shares Lead Fertilizer Rally

CF Industries Holdings Inc. outperformed fertilizer companies intraday as Dutch fertilizer maker OCI NV posted better-than-expected results, and also after reports of higher Middle Eastern urea spot prices were issued by industry consultants.

Fertilizer stocks were trading higher intraday, according to Bloomberg, with CF up as much as 6.6 percent, UAN +3 percent, POT +2.4 percent, AGU +2.2 percent, MOS +2.4 percent (trading ex-dividend)

“Middle Eastern producers are raising price ideas into the next Indian (IPL) tender with results due Sept. 8 and shipping in late October,” Green Markets Head of Research Neil Fleishman said. “Producers’ prices had already risen recently with expectations for increased offers; and if prices jump into it, they could even reduce the size – despite probably needing 2 million mt this year.”

However, on Aug. 2, CF said it sees nitrogen prices challenged into 2018, “with North America entering what is typically its period of lowest demand and prices, new pricing lows should be reached should substantial imports arrive” in the third quarter.

New Fertilizer Plant Coming to Connecticut

Ferti Technologies, St-Michel, Quebec, is adding a new 133,000 sq/ft production facility in Wallingford, Conn. By the end of the year, the company expects it to have multiple blending and bagging lines in Wallingford dedicated to the turf & ornamental market.

Ferti Technologies existing footprint includes production plants in Phoenix, Ariz., Statesville, N.C., Niagara Falls, Ont., and St-Michel, Quebec.

Pinnacle Names New President/CEO

Pinnacle Operating Corp., Loveland, Colo., has named Robert Marchbank as its new president and CEO. He will lead Pinnacle’s agriculture retail and wholesale distribution businesses across 27 states. Prior to joining Pinnacle, Marchbank was CEO of ProBuild Holdings Inc., which, prior to its acquisition by Builders FirstSource Inc., was one of the nation’s largest professional building materials suppliers. At the time of its acquisition by Builders FirstSource, ProBuild had revenues of approximately $4.5 billion, over 400 locations, and more than 10,000 associates in 40 states. Prior to ProBuild, Marchbank served as the CEO of Wolseley plc’s European operations, where he ran multiple business operations across 19 countries.

Marchbank received his bachelor’s degree in government from The College of William and Mary.

Marchbank succeeds Kenny Cordell who is transitioning into a role on Pinnacle’s board of directors.