Washington, D.C.-Faulty or corroded wells have been identified in nearly every fertilizer tank failure since 1995, according to the U.S. Chemical Safety Board (CSB). The CSB issued an accounting as part of its final report and recommendations on the Nov. 12, 2008, catastrophic collapse at Chesapeake, Va., which released 2 million gallons of liquid urea ammonia nitrate. CSB’s recap, which includes a brief description of each incident, along with number of tanks involved, cause if determined, the consequence to communities and waterways, and injuries or deaths, is as follows:
Poneto, Ind., 1995 – a 500,000-gallon tank rupture
Pacific Junction, Iowa, March 1997 – a 1-million gallon tank rupture and cascading failure of two other tanks; release to Missouri River was prevented by a temporary dike
Dixon, Calif., February 1999 – a 250,000-gallon release by tank rupture during transfer out of leaking tank; one killed and two hospitalized
Maumee, Ohio, July 1999 – failure of two fertilizer storage tanks
Webberville, Mich., July 1999 – a 1-million gallon tank rupture at seams; two hospitalized
Cincinnati, Ohio, Jan. 8, 2000 – 379,000 gallons released into Ohio River in million-gallon tank rupture; containing walls and two vehicles destroyed
Morral, Ohio, Jan. 26, 2000 – a 1.5-million gallon tank rupture
Morral, Ohio, March 3 and 8, 2000 – two separate tank ruptures days apart; community and school evacuation
Wilmington, N.C., Nov. 7, 2008 – fertilizer tank failure at seam between shell and bottom caused release to waterway
Ashkym, Ill., Dec. 16, 2008 – 500,000-gallon release due to storage tank catastrophic failure and cascading failure of two smaller tanks
Investigation is still underway in this latest incident, according to the Illinois Fertilizer and Chemical Assn. (IFCA). IFCA told Green Markets that containment and load-out containment requirements by the Illinois Dept. of Agriculture didn’t come into play since the tank incurred a catastrophic failure and blew apart. The pressure of the release threw the fertilizer across and over the containment wall. Investigators still trying to determine the cause of the failure indicated the tank had passed previous inspection.
U.S. Gulf/Tampa: Now that Tampa is down again, this time to $210/mt DEL, sources are looking for NOLA ammonia to drop. However, as the upriver season wanes and industrial demand remains slow, sources say actually finding a new barge trade may be difficult.
Eastern Cornbelt:More storms hit the region last week, dropping heavy rains and hail in some locations and delaying the completion of corn and soybean planting. The moisture added to the frustrations of corn and soybean growers, who were struggling to finish planting and replanting in early June.
Illinois sources reported a little bit of sidedress activity on corn last week, but the pace was still slow. Sources pegged the spot market for ammonia at $325-$355/st FOB in the region last week, with the low reported by Illinois sources on a spot basis. CF’s anhydrous ammonia postings for the May 29 through June 5 order and shipping period included $365/st FOB Mt. Vernon, Ind., and $370/st FOB Frankfort, Ind., Huntington, Ind., Terra Haute, Ind., and Illinois terminals at Albany, Cowden, Kingston Mines, Peru, and Seneca.
Western Cornbelt:The ammonia market was pegged at $315-$340/st FOB regional terminals for spot tons, reflecting another slight drop from last report. CF’s anhydrous ammonia postings for the May 29 through June 5 order and shipping period included $320/st FOB Aurora and Fremont, Neb., $340/st FOB Garner and Spencer, Iowa, and $365/st FOB Palmyra, Mo.
Northern Plains:The anhydrous ammonia market was pegged at $345-$375/st FOB regional terminals to the dealer, depending on location, with delivered ammonia pegged at $400-$410/st in North Dakota. CF’s anhydrous ammonia postings for the May 29 through June 5 order and shipping period included $345/st FOB Glenwood and Pine Bend, Minn., and $375/st FOB Grand Forks and Velva, N.D.
Great Lakes: The anhydrous ammonia market was pegged at $355-$375/st FOB in the region, down from last report, with the low reported by Wisconsin sources and the high by Michigan dealers FOB Courtright, Ont.
UREA
U.S. Gulf:Granular urea barges were generally put between $235-$240/st FOB last week; however, some said prices may have topped out as high as $250/st FOB before the market headed south. Several barges were reportedly sold at $245/st FOB late in the prior week and were headed in that direction. However, by Monday, June 1, sources said most of the buying had been done, and that last minute barges for upriver and demand from rice country had subsided. Despite the price erosion, some players were saying the market has just about found its floor, as there will be more rice demand and higher international prices will keep significant import tonnage away.
Eastern Cornbelt:Illinois sources pegged the urea market at $275-$280/st FOB terminals for prompt tons. The upper end of the range was quoted at the $290/st FOB level in Ohio on a spot basis.
Western Cornbelt:Granular urea was pegged at $275-$295/st FOB regional terminals. The Catoosa/Inola market in Oklahoma was reported in the $275-$280/st FOB range last week.
Northern Plains:The granular urea market was pegged at $270/st FOB the Twin Cities, with the upper end of the range quoted at the $285/st mark FOB Carrington, N.D.
Great Lakes:Granular urea pricing was down considerably from last report. Southern Wisconsin sources tagged the urea market at $275-$280/st FOB river terminals, with the upper end of the regional range at $310/st FOB Michigan warehouses to the dealer. A central Wisconsin source quoted the market at $290/st DEL last week to his location.
Northeast: The granular urea market was pegged at $290-$295/st FOB Baltimore and Philadelphia, with delivered urea reported in the $310-$323/st range in the rest of the region, depending on location.
China: Sources are presenting conflicting reports on the export duty situation. The week opened with sources reporting an extension by one month of lower duties on urea. The week closed with others in the industry saying the plan is still under consideration.
Sources add that also under discussion is the removal of the urea export duty, instead of just extending the period when the duty is only 10 percent.
International traders are watching the Chinese situation closely. If the duty is removed, sources say Chinese urea will instantly become competitive in the global market. If the duty is only lowered to the currently planned 10 percent on July 1, the domestic price will have to come off a few more dollars before Chinese urea can compete with the Black Sea or Middle East product.
India: As suppliers line up tons for delivery this month, sources report MMTC or STC will issue a tender around June 15.
The 450,000 mt IPL booked last month are slated to arrive throughout this month. The next tender will be looking for July delivery, say sources.
The buying houses are watching closely for an announcement from China about its export duty policy. Even if the old Chinese export duty regime is kept in place, say sources, any tender that calls for July loadings will most likely include Chinese urea in the offerings.
Pakistan: Rumors are running rampant that TCP will be asking for another 200,000 mt in the next 10-15 days. Political pressure to ensure adequate supplies in the current application season has been growing. Local media reports steady complaints from regional government officials about pending and apparent shortages of urea.
TCP has argued it is buying urea at a pace that will ensure a plentiful supply in the country.
One snag that hit the process was securing enough credit to open the letters of credit for the awards issued in the last tender. The banks finally arranged for enough money to allow the LCs to be opened.
Black Sea: Fedcominvest has been buying as many tons as possible to fulfill its commitment to IPL/India. Sources report the company paid as high as $248/mt FOB for a small prompt cargo late last week.
Word is also spreading that $250/mt FOB was done for at least one cargo, but no one could point to a specific buyer at that level.
While Fedcominvest has been buying as much as it can from CIS suppliers and traders with positions, sources say the market has remained stable in the low $240s/mt FOB.
Asian sources say the market will most likely remain in a state of flux until either India or Pakistan steps back in with major purchases.
Middle East: Producers maintain they have enough orders on their books into July that they are under no pressure to lower prices. But at the same time, there is not enough business to move the price beyond the low $260s/mt FOB.
Sabic’s successful orders with India and Pakistan, followed by orders being filled from Oman, Qatar, and Kuwait, provide for steady shipments in an otherwise slow period.
Pending tenders from Pakistan and India should give the producers more chances to secure cargoes, but only if the price is right.
Sources say the producers will not be able to push the price up – as they would like – because Middle East tons will have to compete with the Black Sea and China to make a deal.
NITROGEN SOLUTIONS
U.S. Gulf: The UAN barge market has cratered, according to most sources, who are calling it in the $125-$130/st FOB range ($3.91-$4.06/unit). Railcars were reportedly being offered at $135/st.
Eastern Cornbelt: UAN pricing continued to slide, with most sources quoting the regional market at $6.25-$6.50/unit FOB river terminals to the dealer for spot tons. One Ohio source pegged the UAN-32 market at the $215/st ($6.72/unit) FOB level in his location last week. Sources said they were waiting for summer fill numbers to come out at considerably lower levels.
Western Cornbelt: UAN pricing was migrating downward. Some Iowa sources pegged the dealer market in the $6.40-$6.75/unit FOB range for prompt tons, while others said UAN-32 could be had at the $200/st FOB ($6.25/unit) FOB level or lower on a spot basis. Summer fill programs were said to be available for as low as $165-$185/st ($5.16-$5.78/unit) FOB Midwest terminals, but specifics on locations and order/shipping periods were not confirmed.
Northern Plains: UAN pricing was down from last report. Sources tagged the market at $6.75-$7.25/unit FOB regional terminals, depending on location, while delivered UAN-28 in central North Dakota was pegged at $7.85-$8.00/unit.
Great Lakes: UAN pricing in the region was “dropping like a rock,” according to one source last week. The dealer market was pegged in a broad range at $6.50-$7.50/unit FOB, with the low in Wisconsin and the upper end in Michigan. Reference prices for UAN-28 out of Michigan warehouses remained as high as $215-$220/st ($7.68-$7.86/unit) FOB, but sources said the true dealer market last week was a good $10/st lower and falling.
Northeast: The UAN-30 market had reportedly dropped to $185-$186/st ($6.17-$6.20/unit) FOB Baltimore. Out of terminals in upstate New York and Delaware, UAN-32 was quoted at $219.20-$220/st ($6.85-$6.88/unit) FOB to the dealer.
AMMONIUM NITRATE
U.S. Gulf: The last done business continues to be called $220-$225/st FOB, with sources saying no product is now available. Sources generally agree that AN has remained stable and scarce.
Western Cornbelt: Ammonium nitrate remained at $265-$270/st FOB in the region.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate was steady at $225-$245/st FOB. Honeywell reportedly dropped its postings $20/st to the $225/st FOB or DEL level in the Midwest.
Western Cornbelt: Granular ammonium sulfate was steady at $225-$245/st FOB.
Northern Plains: The granular ammonium sulfate market was quoted at $225-$245/st FOB and $225-$255/st DEL in the region, depending on supplier and location. The $255/st DEL level was quoted in North Dakota last week.
Great Lakes: Granular ammonium sulfate pricing was tagged in a broad range at $225-$275/st FOB regional terminals, with the upper end in Michigan for limited tons. One Wisconsin source quoted mid-grade sulfate at $200-$205/st FOB last week.
Northeast: Granular ammonium sulfate was reported at $225-$235/st FOB in the region, with delivered sulfate at the $253/st level to some locations.
PHOSPHATES
Central Florida: While both the export and Gulf markets were showing promising signs for recovery in the near future, Central Florida was gasping for breath and emergency medical technicians were searching for a pulse last week. Several factors were stacking up against a comeback for the state’s market. First, the season was nearly over and there’s not enough time for railcars to arrive and be of much use. Second, high rail rates have driven up the delivered cost of phosphate products and made it much less competitive with the river system. Truck business, which was flourishing a couple of weeks ago, was dwindling to a precious few deals by late last week. Overall, the immediate outlook was not good.
With that in mind, CF lowered its asking price in Central Florida from $270/st FOB to $250/st FOB. A week earlier, the company dropped its price from $295/st FOB to the $270/st FOB mark. That amounted to a $45/st FOB fall in two weeks, which was an indication of the activity in the market. However, it was a much more realistic price and more closely reflected the normal difference between prices for the Gulf and Central Florida markets.
Rumors of additional curtailments continued to flourish in the industry last week, but there were no new signs from producers. PotashCorp has continued to keep its White Springs facility in northern Florida down. Mosaic would not say whether it would slow its rate of production in the near future, but admitted that its system was not running at full capacity. CF, the smallest of the three, was unlikely to curtail.
The Central Florida DAP price range was $250-$260/st FOB, down slightly from the previous week’s $270-$305/st FOB last week. PCS Sales had no published price. Mosaic had no list prices for Central Florida. CF dropped its price to $250/st FOB from $270/st FOB for DAP and was $10/st FOB higher for MAP. The price from Agrifos remained at $350/st FOB for trucks and $340/st FOB for rail shipments.
U.S. Gulf: Producers and traders both said they were getting more interest from potential buyers last week, but that did not translate into a lot of immediate sales. Still, a source said he believed the market had reached bottom and was poised to move up, and several others agreed. Early in the week sales were made in the middle of the previous week’s range, but then many stopped selling, with plans to hold off and take advantage of possible higher prices. Meanwhile, buyers were also on hold and were double-checking with other sellers to see which direction the market was going. By late in the week, sellers were offering at the high end of the previous week’s range. The glut of excess NOLA DAP barges on the river system was depleted or near to it, and that should help to stabilize the market or push it higher.
Pretty much everyone has been bullish on the fall season, although it was a bomb last year. So was spring, so the thinking was that dealers must re-supply. They probably do, but they haven’t been giving their suppliers much information. Not hard to understand, since dealers were the ones who took the biggest beating when phosphate prices dropped around $1,000/st FOB last year.
The price of corn was encouraging last week, somewhere around $4.55/bushel for December. A source noted that hedge funds were reentering the grain market and that was creating bigger price swings – both up and down – than without their participation. It appeared at least some DAP was going back onto pasturelands, which had gone without due to prices for phosphate and beef. If the price of cattle continues to rise, much more fertilizer will be applied.
Warehouse prices remained relatively stable last week, with lows on the Arkansas River of $315-$320/st FOB and highs on the Mississippi and Ohio rivers of $320-$325/st FOB. MAP was $10/st FOB more. As the rain subsided, the Arkansas River became easily navigable last week, but it made no difference because the season was essentially over, in terms of re-supply.
CF posted a new DAP price for NOLA barges of $270/st FOB for June and July, with $5/st FOB increases for each succeeding month. Transactions last week were found as low as $250/st FOB and as high as $255/st FOB, but asking prices were rising late in the week. The NOLA DAP barge price range last week was $250-$255/st FOB, compared to $249-$260/st FOB the previous week. Both Mosaic and CF had a $10/st FOB additional charge for MAP.
Eastern Cornbelt: DAP continued to be quoted at $320-$330/st FOB most regional terminals to the dealer for prompt tons, although some sources talked of summer fill DAP being offered for as low as $285/st FOB for later delivery. CF’s phosphate postings for the May 29 through June 5 order and shipping period included DAP at $320/st FOB Peoria and Cincinnati.
10-34-0 pricing continued to slip as demand and movement ebbed. Sources tagged the market in a broad range at $500-$600/st FOB regional shipping points to the dealer, depending on location and supplier.
Western Cornbelt: The DAP market was pegged at $320-$330/st FOB regional warehouses to the dealer for prompt tons, with summer fill DAP quoted as low as $285/st FOB for delayed shipping dates. MAP was $10/st higher than DAP. CF’s phosphate postings for the May 29 through June 5 order and shipping period included DAP at $320/st FOB St. Louis, Mo., and Inola, Okla., with MAP referenced at $330/st FOB Inola.
10-34-0 pricing had reportedly fallen dramatically, with sources tagging the dealer market in the low-$400s/st FOB in Nebraska and the Southern Plains, and $450/st FOB in Iowa.
Effective June 1, Agrium’s phosphoric acid postings dropped to $610/st rail-DEL for both super phosphoric acid (SPA) and merchant grade acid (MGA) in Colorado, Iowa, Kansas, Nebraska, New Mexico, Oklahoma, Texas, and Wyoming. That level represents a big adjustment from the company’s April 1 reference level of $1,050/st rail-DEL in those states. Going forward, Agrium’s SPA and MGA postings will move in July to $635/st rail-DEL, and to $660/st rail-DEL in August.
Northern Plains: DAP was pegged at $325-$335/st FOB in the region, with MAP roughly $10/st higher. A North Dakota dealer reported delivered MAP at the $366-$370/st level last week. CF’s phosphate postings for the May 29 through June 5 order and shipping period included DAP at $325/st FOB Pine Bend, Minn., and MAP at $335/st FOB at that location.
The only 10-34-0 price confirmed by regional sources last week was $550/st DEL in North Dakota, which reflected a sizable drop from last report. Effective June 1, Agrium’s phosphoric acid postings dropped to $610/st rail-DEL for SPA and MGA in Minnesota and the Dakotas.
Great Lakes: The spot market for DAP was reported at $330-$350/st FOB regional warehouses, with the low in Wisconsin and the upper end quoted by Michigan dealers. Wisconsin sources also reported delivered DAP as low as $310/st, however, as well as summer fill quotes for as low as $285/st FOB river warehouses for later delivery.
MAP was $10/st higher than DAP. 10-34-0 pricing was down dramatically from last report, although movement was pretty much finished in the region. Sources tagged the regional 10-34-0 market at $500-$625/st FOB, depending on location and supplier.
Northeast: MAP was pegged at $340-$365/st FOB, with the low FOB Philadelphia. DAP was $10/st lower than MAP, where available. 10-34-0 pricing had reportedly fallen to $695/st FOB the tank in upstate New York.
Western U.S.: Effective June 1, Agrium’s phosphoric acid postings dropped to $610/st rail-DEL for both SPA and MGA in Arizona, California, Idaho, Montana, Nevada, Oregon, Utah, and Washington. That level is down dramatically from the company’s April 1 reference level of $1,100/st rail-DEL in those states. Agrium’s SPA and MGA postings will move in July to $635/st rail-DEL, and to $660/st railDEL in August.
U.S. Export: After the bearish International Fertilizer Association’s conference in Shanghai, it was surprising that the market began to stabilize and prices firmed. PhosChem sold 25,000 mt into Brazil at prices ranging from $270-$273, and a source said another sale of 20,000 to 25,000 mt was done in the same price range to a customer in Central America.
During the same period, inquiries began to sharply increase. Interest was strongest from Pakistan, India, Brazil, Uruguay, Mexico, Turkey, and Vietnam. Most were offering to buy below the $270/mt FOB mark, but sellers were not biting. The general belief was that export phosphate prices had hit bottom and were stabilizing or on the rise.
Reports that China was eliminating its export duty on TSP but maintaining the 10 percent tax on phosphate exports may help other countries sell DAP.
Based on sales last week, the export DAP price range was $270-$273/mt FOB. The price may rise this week, although not much.
POTASH
Eastern Cornbelt: Potash pricing was also dropping from brokers and resellers, with most sources tagging the regional market last week at $590-$630/st FOB warehouses on the secondary market, depending on location and grade. There were reports of imported potash priced as low as $550/st for direct-transferred tons off the barge, but some sources reported quality issues with this lower-priced material.
Western Cornbelt: Potash pricing was under pressure on the secondary market. The dealer market was tagged at $590-$630/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/st FOB for standard, $780/st FOB for soluble, $772/st FOB for granular, and $780/st FOB for white granular. 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. Several sources said Russian potash could be had for as low as $550/st FOB Pine Bend, but some expressed doubts about both the quality and availability of that tonnage last week.
Great Lakes: Potash was reported at $590-$650/st FOB regional warehouses for brokered tons last week, reflecting a sizable drop from last report. The low end of the range was reported by southern Wisconsin sources, while the high was quoted for red granular potash in Michigan. Reference prices out of Michigan warehouses remained as high as $725/st for red granular and $733/st FOB for white, but there was no business reported at those levels. “Producers are out to lunch on their pricing,” said one contact. “We didn’t move 20 percent of our normal potash this spring.”
Northeast: Pennsylvania sources tagged the potash market as low as $635/st for spot tons FOB the warehouse from brokers or resellers last week, while delivered potash was pegged at $706-$710/st to points in Maryland and Delaware.
International: Coming out of the IFA meeting, sources say the potash market is still a tense waiting game. While producers had predicted new business with India and China by the end of the second quarter, Agrium President and CEO Mike Wilson told analysts last week at the Goldman Sachs Materials Conference that the negotiations with China could drag into July, noting that they dragged into July in 2006 before there was a settlement. He said the Chinese are sitting on 3 million mt and the Indians 500,000 mt.
While producers say prices need to remain firm-to-stronger, Chinese domestic producers have dropped their own prices, leaving buyers with the perception that importers should as well, particularly since other major fertilizer products have seen reduced prices.
SULFUR
Tampa: China didn’t do the sulfur industry a big favor last week when it announced its 17 percent duty on imported sulfur was in place. The industry has a more than adequate supply, and that will not help reduce the load or increase the profit margin – or loss margin.
“The sulfur industry’s on a suicide watch,” one sulfur source said last week, which was a mostly optimistic attitude.
However, one area that has been a bright spot of late for sulfur has been the prillers along the Gulf Coast. Enough vessels were expected to load to put a serious dent in the inventories. Business to China was down, but was up for Brazil and Morocco, which are not traditional customers. Ocean freight rates to China were running about $10/mt higher than the other destinations.
It was far too early to worry about third-quarter sulfur prices, but early indications were that the price was more likely to go down than up. The biggest fear was additional curtailments of phosphate production, which would have to come from Mosaic. However, the big phosphate producer has made no official announcement of any such plans, but it has said only it was not running at capacity.
MARKET NOTES
China: Sources reported early last week that the Chinese government announced the elimination of all export duties on TSP until the end of the year. Urea is also to have an extended period of lower export duties, they said. By the end of last week, however, nothing was posted on Chinese government web sites, leading Asian observers to wonder when the move will be made official. Reducing the TSP export duty is seen by many in the industry as a logical step. Sources in Asia say the government has been concerned that growing stockpiles of phosphates, especially TSP, could cause local producers to shut down operations unless exports were encouraged. Under the original plan, TSP exports would be taxed at 10 percent for the rest of this year after sitting at 110 percent from February through May. The plan under consideration will eliminate the duty. Urea exports are currently scheduled to be taxed at 10 percent for July and August, down from the current 110 percent. But under the new plan, the lower rate will be extended to include September. Urea stockpiles have been building in the country. The specter of layoffs in the industry became a growing concern.
Turkmenistan: India is eyeing fertilizer manufacturing in Turkmenistan, with a team traveling to the country for an on-the-spot assessment. India is trying to secure one of the three plants that are planned for construction in Turkmenistan with a urea capacity of 400,000 mt/y each. Others being proposed include a 400,000 mt/y ammonia plant, a 3 million mt/y ammonium sulfate facility, a 1 million mt/y potassium chloride plant, and a 200,000 mt/y potassium sulfate facility.
CF Industries Holdings Inc. said June 1 that Lynn White has been elected vice president, corporate development. He succeeds W. Anthony Will, who became vice president, manufacturing and distribution, earlier this year.
Prior to joining CF, White, 56, was the founder and managing director of Twemlow Group LLC, a consulting firm he established in 2008. Prior to founding Twemlow, he held a number of executive positions with Deere & Co, including a stint from 2005-2007 as president of John Deere Agri Services. Earlier, he was senior vice president, corporate development, for IMC Global Inc., which later merged with a unit of Cargill to become The Mosaic Co.
White earned his B.A. in History, with a minor in Economics, at California Polytechnic State University, San Luis Obispo. He also holds an MBA in Finance and Multinational Enterprise from the University of Pennsylvania’s Wharton Graduate School of Business.
Truth Chemical has announced the hiring of Mark McCostlin as director, specialty products, effective June 1. Previously, he held the position of North American sales and marketing manager for Haifa NutriTech in Florida. He will be relocating to the Truth corporate offices in The Woodlands, Texas. Mark can be reached by cell phone at 317-379-1480, or mmccostlin@truthind.com.
Phosphate Holdings Inc., which owns Mississippi Phosphates, announced May 29 that former Senator Trent Lott, Sr. and Thomas Jagodinski were elected as members of the company’s board of directors effective May 19, 2009. Both are elected for one-year terms.
Lott, 67, has served as a partner in Breaux Lott Leadership Group, a consulting and lobbying firm, since January 2008. He was a member of the U.S. Senate from 1989 to 2007, and held the position of Senate Majority Leader from 1996-2001. He was in the U.S. House of Representatives from 1973-1989.
Lott currently serves as a member of the board of EADS North America, which is the North American operations of EADS, the second largest aerospace and defense company in the world. Senator Lott holds a B.S. degree in public administration and a J.D. from the University of Mississippi.
Jagodinski, 52, has been a private investor since July 2007. He was employed by Delta and Pine Land Co., a cottonseed breeding, producing, and marketing company, from 1991 until July 2007, when Monsanto Co. acquired the company. While at Delta, he served as president, CEO, and a member of the board from 2002 until July 2007. Jagodinski currently serves as a member of the boards of Solutia, Inc. and Lindsay Corp. He has a B.S. degree in accounting from the University of Mississippi.
New officers were elected to the International Plant Nutrition Institute’s board of directors May 24. Mike Wilson, Agrium Inc. president and CEO, was elected IPNI board chairman for a two-year term. Joachim Felker, K+S Aktiengesellschaft board member is the new IPNI vice chairman. Stephen Wilson, CF Industries Holdings Inc. president and CEO, was re-elected chair of the finance committee.
Patricio Contesse, SQM president and CEO, concluded his term as IPNI board chairman and was recognized for his outstanding leadership and service in that role since 2006.
The Nutrients for Life Foundation has announced the selection of Joan Kyle as its first regional representative. Kyle, a veteran of the agribusiness community and avid education volunteer, will provide educational, grassroots, and public awareness services in the state of Florida. Her primary emphasis will be working with educators in the school system in the promotion of the Foundation’s plant and soil science curriculum, Nourishing the Planet in the 21st Century; working with industry members in sharing the Foundation’s core programs; and enhancing community relations. Kyle began her duties June 1. The regional representative position in Florida is the first of its kind, made possible with support from Agrium Inc. The Foundation said the industry recognized a need for more “on-the-ground” educational resources and created the regional representative program. If the Florida position proves effective, the Foundation may consider hiring a second regional representative next year.
Ajay Shriram, chairman and senior managing director of DCM Shriram Consolidated Ltd. (DSCL), was elected president of the International Fertilizer Industry Association (IFA) on May 27, 2009, during IFA’s Annual Conference in Shanghai. He takes over from Thorleif Enger, formerly from Yara International ASA, who remains a member of IFA’s executive management group as immediate past president. Shriram is also a director of the Fertiliser Association of India (FAI).
Shriram is also chairman of DSCL’s subsidiary companies, DSCL Energy Services Co. Ltd. and Shriram Bioseed Genetics India Ltd. He is also a member of the Rabobank International Asian Food & Agribusiness Advisory Board.
Sugar Land, Texas-CVR Energy Inc. has announced that its wholly-owned subsidiary, Coffeyville Resources, LLC, and J. Aron & Co., have agreed to reduce the notional amount of a funded letter of credit supporting the company’s obligations under an existing cash flow swap from $150 million to $60 million. In connection with an amendment to the cash flow swap agreement executed May 29, 2009, Coffeyville Resources has caused $90 million of the funded letter of credit facility under its credit agreement to be refunded back to the lenders, thereby reducing such facility to $60 million. “We are pleased that the funded letter of credit requirement has been reduced,” said CVR CEO Jack Lipinski. “Based on current rates, the reduction will save the company approximately $5 million in interest costs during the next 12 months.” Effective at the end of June this year, the cash flow swap ramps down from 5.9 million barrels per quarter to 1.5 million barrels per quarter, or about 15 percent of production at the company’s Coffeyville, Kan., petroleum refinery. The remaining obligations under the cash flow swap will be fully satisfied on June 30, 2010.
Overland Park, Kan.-Compass Minerals International Inc. said May 21 that it is proposing to offer, in a private placement, $100.0 million in aggregate principal amount of senior notes due 2019. The proceeds will be used to fund the concurrent tender offer to purchase any or all Compass outstanding $89.6 million in aggregate principal amount 12 percent senior subordinated discount notes due 2013. The senior notes being offered will not be registered under the Securities Act of 1933, and may not be offered or sold in the U.S. absent registration or an applicable exemption from registration requirements. The senior notes are being offered only to qualified institutional buyers under Rule 144A and outside the U.S. in compliance with Regulation S under the Securities Act.
White Plains, N.Y.-Bunge Ltd. said June 3 that it has successfully entered into two unsecured, committed revolving credit facilities with a syndicate of banks for an aggregate principal amount of approximately $1.65 billion. The credit facilities consist of a $1 billion three-year facility and a $645 million 364-day facility. The new facilities replace two existing revolving credit agreements with an aggregate borrowing capacity of $1.7 billion that were scheduled to mature in 2009.
Oslo-Yara International ASA said June 4 that it has decided to launch a new U.S. dollar bond offering. It is Yara’s second ten-year U.S. dollar bond offering pursuant to rule 144A/Regulation S, subject to market conditions. Yara issued its inaugural U.S. dollar bond of 500 million U.S. dollars in December 2004, with maturity in 2014. Yara intends to use the net proceeds of the new issue to repay short term financing.
Cairo-Orascom Construction Industries Inc. (OCI) said June 1 that Egypt Basic Industries Corp. (EBIC) has successfully completed its first export shipment of anhydrous ammonia, totaling 23,400 mt, using its export facilities in Sokhna Port on the Egyptian Red Sea coast. Exports take place through a dedicated jetty operated by EBIC. EBIC owns and operates two port storage/export tanks with a total capacity of 80,000 mt, and a loading arm with a capacity of 1,200 mt per hour. EBIC’s name plate capacity is 2,000 mt/d, or 700,000 mt/y.
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