Inputs Monitor Editor Davis Michaelsen adds his perspective into the happenings of the inputs markets.
Inputs Monitor October Wrap-Up
Nov 05, 2012
Inputs Monitor Regional Index Composite 6.05 higher over last month. Anhydrous, DAP and farm diesel all spent the month moving higher, while Urea spent the entire month of October in decline.
Anhydrous $27.14 higher month-over to $861.75; DAP $8.92 higher to 653.75; MAP $12.40 higher to end the month at $667.58.
Potash $0.36 lower all told at $604 even; UAN28 $8.21 higher to 380.58; UAN32 $17.38 higher to $441.66.
Urea shucked $19.22 over the month to end at $587.50.
Farm diesel added $0.06 to $3.68 on four weeks of solid gains and LP wavered week-to-week, ending the month $0.067 higher at $1.416.
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In the news...
October was an active month in Inputs news. PotashCorp announced production shutdowns on waning Asian demand, Japan and China circled each other in the East China Sea, legislation encouraging trade between the U.S. and Panama took effect, and Iowa ok's the use of manure on soybeans amid controversy and public outcry.
Click on the headlines below for the full stories and look to your Inputs Monitor for pricing updates and analysis as well as Inputs industry news as it happens.
On the farm...
Iowa Panel Affirms Right to Spread Manure -- 10/19/2012
The Des Moines Register reported yesterday on a decision by the Iowa Environmental Protection Commission (IEPC) on Tuesday to allow farmers to use limited amounts of liquid manure as fertilizer for soybean fields. The news comes as a rule from five years ago came up for discussion.
NPK Levels in Manure -- 10/05/2012
These handy tables including data from Iowa State University Extension give specific N, P & K values for a variety of manures. .
U.S.-Panama Trade Promotion Agreement Takes Effect Today -- 10/31/2012
Acting U.S. Commerce Secretary Rebecca Blank released a statement on Monday in praise of the U.S.-Panama Trade Promotion Agreement (TPA) which goes into effect today. The agreement will encourage trade between the two nations, allowing goods to move more freely between one of Latin America's fastest growing economies and the U.S.
Sinopec's Q3 Results Cry Havoc -- 10/30/2012
China Petroleum and Chemical Corp. (Sinopec) released third-quarter results this week and the state-owned company showed upticks in production and sales, but fell short year-over on net-profit attributable to shareholders and basic earnings per share. This comes as tensions rise between China and Japan who both claim rights to resources in the East China Sea.
Look for sabre rattling to escalate as each nation has initiated military exercises in the area.
PotashCorp Stalls Production -- Earnings Down -- 10/18/2012
Saskatchewan's PotashCorp (POT) today announced earnings guidance for full-year 2012 will fall below the low end of the previous range of $2.80-$3.20 per share provided in July 2012. The change primarily reflects lower than forecasted potash sales volumes due to delays in new contracts with buyers in China and India. Earnings for third-quarter 2012 are expected to be at the low-end of the $0.70-$0.90 per share guidance range previously provided.
PotashCorp announced yesterday that it will exert some inventory control by shutting down two of its production facilities, each for eight weeks beginning in mid-November.
Agrium Unlocks Value for Shareholders -- 10/22/2012
Agrium Inc. (AGU) has been one of the best performing stocks in North America. The company’s share price in U.S. dollars has increased 56 percent year-to-date and by 87 percent over the past three years on the NYSE, versus 14 percent and 31 percent respectively for the S&P 500.
Agrium had been discussing a split of its retail and wholesale divisions with activist shareholder JANA Holdings who suggest that such a move would unlock more value for shareholders. Agrium has repeatedly shot down the notion in favor of its long-standing, successful business model which includes retail as well as wholesale components.