All Posts from October 7, 2013

Dakota Plains Co-op votes to join CHS

News, News Briefs

Inver Grove Heights, Minn. — Members of Dakota Plains Cooperative, a full-service agribusiness headquartered in Valley City, N.D., voted last week to approve a merger with CHS Inc., Inver Grove Heights, Minn. The proposed merger, first announced on Aug. 23, passed with 92 percent approval and will become effective Jan. 1, 2014, pending appropriate due diligence by both organizations and final approval by the CHS board of directors. “We are pleased the members could see the same vision and opportunities the board saw in merging with CHS,” said Greg Svenningson, Dakota Plains board president. “We are excited to partner with the nation’s leading cooperative.” Dakota Plains offers farmers and ranchers a full line of agronomy, seed, feed, and energy services and products from 15 locations in central and southeastern North Dakota. When the merger proposal was announced in August, CHS said an integral part of the study was a “close examination of opportunities to enhance agronomy assets in the east central area of North Dakota.” CHS said then that plans were under discussion to construct three new fertilizer plants within the Dakota Plains trade area “to take full advantage of the proposed fertilizer manufacturing facility in Spiritwood, N.D., currently under review by CHS.” A series of informational meetings for Dakota Plains patrons were held in September to bring more information to area growers. CHS said last week that those patrons should expect a smooth transition, including continuity of staffing at its locations. Ken Astrup will continue to lead the co-op as general manager. “This is a good match for both cooperatives,” John McEnroe, executive vice president, CHS Country Operations, said last week after the merger approval. “We are always interested in investments that align with the CHS commitment to helping our farmer-owners grow their businesses.” Dakota Plains operates locations at Ashley, Englevale, Forman, Gwinner, LaMoure, Lidgerwood, Lisbon, Litchville, Milnor, Oakes, Sanborn, Valley City, and Wyndmere, with agronomy and fertilizer facilities located at Englevale, LaMoure, Lisbon, Lichville, Milnor, and Sanborn.

Potash

California, Eastern Cornbelt, Market Watch, Pacific N.W., Potash Muriate, Russia, U.S. Gulf, Western Canada, Western Cornbelt

U.S. Gulf: The market continued to be called $345-$350/st FOB for recent trades, though some still think it should be lower, citing weak international pricing.

Spot granular business to Brazil was reported to have moved down to $340-$350/mt CFR, while contracts were reportedly inked for India that would equate to $360/mt CFR for standard product, down from $427/mt CFR for the first half.

Eastern Cornbelt: Potash pricing had reportedly fallen to $385-$395/st FOB in the Eastern Cornbelt, with the low FOB Cincinnati. Indiana sources quoted rail-delivered potash as low as $390/st last week, which one source said was down from $398-$405/st DEL just three weeks earlier.

Western Cornbelt: Potash pricing in the Western Cornbelt continued to be quoted at $380-$395/st FOB regional warehouses in early October.

California: Muriate of potash pricing was flat at $495-$502/st FOB and $500-$510/st DEL in California, with “nothing moving,” according to sources.

Sulfate of potash pricing remained at $650-$655/st FOB in California, with the low for mid-grade and the upper end for “choice” granular product. Sources described the market as tight, with movement starting to pick up rapidly on almonds.

The K-Mag market was quoted at the $430/st FOB level out of warehouses from Fresno south, with inventories described as very tight.

The dealer market for crystalline potassium nitrate remained at $950/st FOB for bulk and $1,020/st FOB for bags.

Pacific Northwest: Potash continued to be quoted at $455-$460/st FOB and $450-$460/st rail-DEL in the Pacific Northwest. The potash market FOB Utah mines was quoted at $395/st, although some sources reported a lower number based on netbacks for delivered prices in Washington.

The K-Mag market remained at $461-$481/st FOB in the Pacific Northwest, with sources reporting continued tight supplies.

Western Canada: The regional potash market was flat at $460/mt FOB Saskatchewan mines to Canadian customers. Dealer pricing out of Western Canada warehouse locations remained in the $468-$491/mt FOB range, depending on location and supplier.

Russia: Uralkali reports that third-quarter potash production was 2.7 million mt, up 5 percent versus the year-ago 2.6 million mt. Nine-month production still lagged the year-ago figure at 7.2 million mt versus 7.4 million mt.

Phosphates

California, Central Florida, Eastern Cornbelt, Market Watch, Pacific N.W., Phosphate Rock, U.S. Exports, U.S. Gulf, Western Canada, Western Cornbelt

Central Florida: A high pressure system kept the northern portion of the eastern U.S. drier than normal, allowing harvest to continue uninterrupted in early October.

The Central Florida market price range last week was unchanged at a flat $410/st FOB. No new spot sales were found. MAP continued to bring a $20/st premium over DAP at Central Florida.

U.S. Gulf: Activity at terminals and warehouses was on the upswing last week, and prices for NOLA DAP barges firmed. Sources noted that there was no major resurgence in market activity, however, but rather just a slight improvement.

One of the victims of the federal government shutdown will be crop reports from the USDA, which will not release new updates until the situation is resolved. The one area that will continue to operate will be meat and poultry inspections, however, which were considered essential services.

On the Cargill futures market, prices for corn and soybeans were down compared to the previous week, while prices for wheat were mixed. Corn was $4.3925/bushel for December 2013, down from $4.57/bushel the previous reporting period, while corn for December 2014 fell to $4.8075/bushel from the previous week’s $4.9675/bushel.

The soybean price for November 2013 was $12.8825/bushel, down from $13.1725/bushel a week earlier. Beans for November 2014 were also lower, at $11.70/bushel from the prior week’s $11.7925/bushel.

Wheat for December 2013 improved to $7.555/bushel from the previous week’s $7.275/bushel. Wheat for July 2014 was $7.3125/bushel, while wheat for July 2015 slipped slightly to $7.1550/bushel, compared with $7.16/bushel one week earlier.

Water levels on the Mississippi River remained a problem last week, and Blytheville, Ark., was still having trouble loading and unloading. The heavier-than-normal rains that fell in the late spring and early summer gave way to shortages in July. There were also reports that lock work on the Ohio River could limit barge movement in the coming weeks.

Warehouse and terminal DAP prices remained flat to week, with MAP running approximately$20-$25/st higher than DAP. The price gap between the two will likely shrink with the arrival of fresh OCP product from Koch and Helm. Sources said product was being purchased on an as-needed basis, rather than in advance.

The NOLA DAP barge price range last week came in at $372-$380/st FOB based on confirmed trades at New Orleans at the time of the sale. That range was broader than the previous week’s $372-$373/st FOB NOLA range. Prices may firm during the next few weeks as the fall application season picks up steam.

MAP barge prices were reported at $392-$405/st FOB NOLA.

Eastern Cornbelt: The DAP market had reportedly fallen to $410-$430/st FOB in the Eastern Cornbelt, down $15/st from last report, with the low at Cincinnati and the upper end FOB East Liverpool. MAP pricing was also lower at $435/st FOB Cincinnati and $450/st FOB East Liverpool and inland terminals in Indiana.

The 10-34-0 market was tagged at $445-$470/st FOB in the region, with the upper end in the Ohio market. Indiana sources also quoted delivered 10-34-0 at the $455/st level last week.

Western Cornbelt: DAP was quoted at $415-$425/st FOB regional warehouses in the Western Cornbelt, with MAP $20-$25/st higher, depending on location.

10-34-0 remained at $410-$425/st FOB in the region.

California: Although postings remained at $560-$565/st FOB or DEL, sources quoted the true MAP market at $525-$540/st DEL in California, with the low for railed tons from the Midwest and the upper end from western producers.

16-20-0 was unchanged at $448-$455/st FOB and $448/st DEL in the state, while 0-45-0 with Avail remained at $520/st FOB.

Ammonium Sulfate

Ammonium Sulfate, California, Eastern Cornbelt, Market Watch, Pacific N.W., Western Canada, Western Cornbelt

Eastern Cornbelt: Granular ammonium sulfate remained at $270-$280/st FOB in the region, with the upper end quoted out of the East Liverpool and Maumee markets in Ohio.

Ammonium thiosulfate was unchanged at $345/st FOB in the Eastern Cornbelt.

Western Cornbelt: Granular ammonium sulfate was steady at $255-$270/st FOB in the Western Cornbelt, depending on location. Ammonium thiosulfate remained at $310-$345/st FOB in the region.

California: Ammonium sulfate pricing remained flat at $260-$310/st FOB in California, depending on location, grade, and supplier, with the low reported for standard grade on a spot basis.

Ammonium thiosulfate was steady at $300/st FOB Stockton for truck tons.

Pacific Northwest: The ammonium sulfate market was unchanged at $250-$290/st FOB and $260-$300/st DEL in the Pacific Northwest, with the low for standard grade and the upper end for granular.

Ammonium thiosulfate was steady as well at $310-$315/st FOB in Washington.

Western Canada: Granular ammonium sulfate was steady at $380-$385/mt DEL in Western Canada.

Ammonium Nitrate

Ammonium Nitrate, California, Market Watch, Pacific N.W., U.S. Gulf, Western Cornbelt

U.S. Gulf: After about a month of weakening prices, sources said ammonium nitrate barges were starting to find their legs last week. Recent trades were put in a broader range at $270-$290/st FOB.

Western Cornbelt: Ammonium nitrate was steady at $350-$365/st FOB in the Western Cornbelt.

California: No market was reported for ammonium nitrate in California.

CAN-17 remained at $315-$328/st FOB in the state, depending on location and supplier. Effective Sept. 13, Agrium lowered its CAN-17 posting in California to $315/st FOB Woodland and Helm, Calif., down $20/st from its July 30 posting at those locations.

AN-20 was steady at $300/st DEL and $290-$295/st FOB in the state. Agrium’s AN-20 posting fell on Sept. 13 to $300/st truck-DEL from the previous $310/st level.

Pacific Northwest: No market was reported for ammonium nitrate in the region. CAN-17 remained at $338/st FOB Kennewick, Wash.

Nitrogen Solutions

California, Eastern Cornbelt, Market Watch, Pacific N.W., U.S. Gulf, UAN, Western Canada, Western Cornbelt

U.S. Gulf: The market was very quiet at $225-$230/st ($7.03-$7.19/unit) FOB.

Eastern Cornbelt: UAN pricing was down slightly in the Eastern Cornbelt region last week. Sources pegged the UAN-28 market at $245-$255/st ($8.75-$9.11/unit) FOB, with the low at Cincinnati and the upper end reported out of inland terminals in Indiana.

Indiana sources also reported rail-delivered UAN-32 in the $285-$290/st ($8.91-$9.06/unit) range last week, while Illinois contacts quoted terminal pricing for UAN-32 at $275-$285/st ($8.59-$8.91/unit) FOB.

Western Cornbelt: UAN-32 remained in a broad range at $260-$295/st ($8.13-$9.22/unit) FOB regional terminals, with the low reported in Missouri on a spot basis and the upper end in Iowa.

California: The UAN-32 market had reportedly slipped to $325-$335/st ($10.16-$10.47/unit) FOB Stockton, Calif., with the upper end pegged at $345/st ($10.78/unit) FOB El Centro and Port Hueneme, Calif.

On a rail-delivered basis, Central Valley sources pegged the dealer market for UAN-32 as low as $320/st ($10.00/unit) for October delivery.

Pacific Northwest: Washington sources continued to quote the UAN-32 market at $340/st ($10.63/unit) DEL in early October, with the FOB market at virtually the same price.

Effective Sept. 13, Agrium lowered its UAN-32 postings to $340/st ($10.63/unit) rail-DEL in Washington, northern Idaho, and Oregon excluding Malheur County; $345/st ($10.78/unit) rail-DEL and $350/st ($10.94/unit) truck-DEL in Nevada, Utah, southern Idaho, and Oregon’s Malheur County; and $345/st ($10.78/unit) rail-DEL and $360/st ($11.25/unit) truck-DEL in the Klamath Basin sales area.

Western Canada: UAN-28 remained at $339-$342/mt ($12.11-$12.21/unit) DEL in Manitoba, $342-$345/mt ($12.21-$12.32/unit) DEL in Saskatchewan, and $345-$354/mt ($12.32-$12.64/unit) DEL in Alberta and British Columbia.

Urea

Black Sea, California, China, Eastern Cornbelt, India, Indonesia, Market Watch, Middle East, Pacific N.W., Pakistan, U.S. Gulf, Urea, Western Canada, Western Cornbelt

U.S. Gulf: Prompt granular barges were firm last week as players made their last push to get barges up the river to meet its close. New trades were put in the $295-$305/st FOB range, with late October-November called $285-$290/st FOB.

Prills were called softer at $300-$310/st FOB.

Eastern Cornbelt: Granular urea pricing had reportedly slipped to $320-$340/st FOB in the Eastern Cornbelt, down $5/st from last report, with the low reported at Cincinnati, Ohio.

Western Cornbelt: Granular urea remained at $320-$335/st FOB in the Western Cornbelt, depending on location.

California: The granular urea market in California had reportedly slipped to $390-$400/st FOB, down some $30-$40/st from last report. No delivered prices were reported for urea in California last week.

Pacific Northwest: Granular urea pricing was pegged at $375-$380/st FOB Rivergate, Ore., with delivered tons quoted solidly at the $400/st level in the Pacific Northwest in early October.

Western Canada: Granular urea remained at $505-$510/mt DEL in Manitoba, $510-$515/mt DEL in Saskatchewan, and $515-$530/mt DEL in Alberta and British Columbia, but sources reported no new business to test the market. One source speculated that any new sales would likely be in the $430-$440/mt DEL range in the region to attract business.

India: The MMTC tender results keep bobbing up and down.

Initially sources said only about 500,000 mt would be taken under the tender. As Green Markets went to press, however, industry watchers were reporting that MMTC and a handful of traders have tentative agreements to ship at least 900,000 mt to 1 million mt.

The validity date for the offers was Monday, Oct. 7. Sources say they expect to see MMTC negotiating right up to the final moment, with MMTC bidding with different prices for different ports.

The larger east coast ports are being held to the Bary Chemical price of $294.95/mt CFR. West coast ports so far are facing prices of $297-$298/mt CFR. Reports are circulating that letters of intent have been exchanged with a number of the trading houses, but no one has yet confirmed this.

One trader noted that MMTC was not just working its way up the offering list. Reportedly the MMTC agents jumped around to different offering companies to see who would be willing to accept a bid within their price ranges.

The move to take 1 million mt makes sense, said one trader. Offers in the tender were lower than expected. Sources were expecting prices closer to $300/mt CFR. At the same time, the Indian rupee has regained some of its value. This will make the large purchase less damaging to the Indian treasury.

China is expected to be the big winner in this tender. Sources reported that about 600,000 mt accounted for the first round of award agreements. As the purchase quantity went up, sources said more tons are expected to come from China and Iran.

Shipments must begin by Nov. 11. Sources say this will work out fine for the Chinese. Tons in the bonded warehouses by the end of the month can be shipped after the deadline for the low-tax export season passes at the end of this month.

Everyone in the industry expects to see Chinese tons flow to India for several weeks after the deadline.

Pakistan: The Economic Coordination Committee (ECC) decided late last week to authorize TCP to import 500,000 mt of urea by the end of the year.

The ECC deliveries are to be broken into two lots. The first will be 300,000 mt to be delivered in November. The second of 200,000 mt will be scheduled for December.

The earliest TCP could close the tender would be Friday, Oct. 11, say sources. Normally, TCP must give a one-month notice for an

Ammonia

Ammonia, Aqua Ammonia, Black Sea, California, Eastern Cornbelt, Market Watch, Middle East, Pacific N.W., Tampa, U.S. Gulf, Western Canada, Western Cornbelt

U.S. Gulf/Tampa: The markets remained quiet last week.

October NYMEX natural gas closed for the month on Sept. 26 at $3.498/mmBtu. November closed Oct. 3 at $3.499/mmBtu.

Eastern Cornbelt: Sources reported slightly higher anhydrous ammonia prices in the Eastern Cornbelt last week.

In Illinois, the dealer market was pegged at $550-$560/st for prompt or prepay tons, with the low reported at East Dubuque. The Henderson, Ky., ammonia market was also quoted at the $550/st FOB level, while pricing out of Indiana terminals was reported at the $560/st FOB level or higher, depending on location.

Dry weather allowed growers to pick up the harvest pace in much of the region in early October. Although USDA’s weekly crop progress report was suspended due to the government shutdown, Illinois sources said roughly 13 percent of the state’s corn was in the bin by the first of the month, with better-than-expected yields reported.

An Indiana source said wet weather slowed activity in his area at midweek, but growers had roughly 25 percent of the soybeans in the bin and were just starting on the corn harvest. He said soybean yields were averaging in the 50s, while early corn yields were coming in at 160-170 bushels/acre.

Although growers and dealers have deferred fall fertilizer purchases, several sources said they continue to expect a brisk fall application season. “I feel like if the weather cooperates, we’ll have an average-to-good fall season,” said one contact. “The income looks like it’ll be there for them.”

Another regional source agreed, noting that movement has picked up on wheat ground and alfalfa, and also in preparation for next spring. “In another 10 days, it’ll be heavy,” he said.

Western Cornbelt: Harvest continued in the Western Cornbelt in early October, although colder, wetter weather was likely in Nebraska and Iowa as the week advanced.

The moisture, while hampering harvest activities, is needed in the region. The Oct. 1 U.S. Drought Monitor showed drought conditions covering nearly the entire state of Iowa, with moderate to severe drought reported throughout most of the state. While moderate to severe drought conditions persisted in Nebraska, the state’s overall drought outlook has improved, with extreme drought limited to only a few patches in the western counties.

The anhydrous ammonia market was up slightly in the Western Cornbelt, with sources quoting the dealer market at $510-$525/st FOB in Nebraska, $525-$540/st FOB in Iowa, and up to $550/st FOB Palmyra, Mo. Several sources said they expect a decent fall ammonia season in the region based on fall prepay orders.

California: The anhydrous ammonia market remained at $630-$635/st DEL in California. Agrium’s Sept. 13 anhydrous ammonia posting in Central California was $630/st truck-DEL, down $65/st from the company’s Aug. 1 posting. The new posting mirrors Calamaco’s Sept. 1 anhydrous posting in California.

The aqua ammonia market remained at $172/st FOB in California.

Heavy rain hit parts of Northern California in late September, while dry weather persisted in Central and Southern California. The conditions made for brisk harvest progress in the Central Valley, where sources said growers were wrapping up the silage corn and almond harvests, and were well underway on pistachios and walnuts.

Optimism is high for the upcoming fertilizer season in California, barring any water issues that might impact key irrigation districts. One source said he’s seen a “tremendous year” for gypsum and soil amendments, which he noted is a good omen for fertilizer usage. “It means growers have some money to spend on inputs,” he said.

Pa

Wilbur-Ellis to build fertilizer facility in Nebraska

News, News Briefs

Walnut Creek, Calif. — Wilbur-Ellis Co. is planning to expand its York, Neb., facility, making it the company’s first full-fledged agricultural retail location in the state. The new facility will include bulk fertilizer storage, a runway expansion, additional warehousing, and a bulk seed and treatment facility. The company began its presence in Nebraska with the acquisitions of Muckel’s Aerial Inc. and Ag Flight Inc. in 2010. While the company is known for its aerial application capabilities in the area, it is working toward bringing its total solutions approach enjoyed by its customers across the company’s operations in the U.S. This approach includes access to Wilbur-Ellis field technology specialists, as well as their portfolio of branded products. “In many of our geographies across the U.S., Wilbur-Ellis is known for having full-service agriculture retail locations,” said Jason Perdue, sales agronomist for Wilbur-Ellis. “Our goal is to maximize our growers’ return on investment, and this new facility will expand our capabilities and help us meet those goals.” In addition to the facility, the company has hired employees to help grow and support the business in Nebraska, including LaVerle Miller and Chase Johnson as sales agronomists, bringing 25 years of agronomy experience. Also coming on board is Ernie Price as operations manager. The facility is expected to be completed by the end of 2014.

Sulfur

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

Tampa: Only days after the start of the fourth quarter, Mosaic was in the process of settling prices for molten sulfur delivered to Tampa. The price was not yet available, but rumors were. The price could be finalized soon.

The third-quarter molten sulfur price for delivery to Tampa was $95/lt. Whatever the new price is, the consensus is that it will be lower. As inventories for phosphate continued to rise, cutbacks in production were expected. An increase in sulfur at the Gulf of Mexico and continued deliveries from Canada were also cited as reasons for the rollback.

Another casualty of the federal government shutdown was the release of information on refinery capacity operating rates for the week. No new figures were available at press time.

U.S. Gulf: The price for Gulf prill was in a range of $60-$65/mt FOB due to its export bias, but exports have fallen off during the past few months. Less was going to prillers, which was boosting supplies of molten sulfur to Tampa.

Vancouver: Sulfur prices at Vancouver were firming, with sources quoting a range of $50-$70/mt FOB last week. Sources said sulfur coming from Alberta will likely decline in relation to the new Tampa molten price.

West Coast: Prices on the West Coast were in line with Vancouver at $53-$73/mt FOB.

Benelux: The Benelux price range for the third quarter was $140-$155/mt.

ADNOC: The ADNOC price was set at $80/mt FOB, down from the previous $90/mt FOB.

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