Fresh tropical threat has fertilizer industry’s attention as those in possible path prepare again

HOUSTON (ICIS)–As another tropical storm churns towards the US, the domestic fertilizer industry was watching cautiously, with those having assets in the potential path of landfall movement beginning to prepare for potential very heavy rains and intense winds upcoming.

With its current projection taking it towards the southeastern corner of the Gulf of Mexico and a landfall possibly around northern Florida, industry participants were expressing relief that tropical weather would avoid striking the vital New Orleans (Nola) area once again.

Late on 24 September Tropical Storm Helene had winds measuring at 50 miles per hours (mph) and was moving west-northwest at 12mph, with forecasters saying it was looking more organized and likely to intensify rapidly.

There is some thought this storm has enough forward momentum that it will not stall over land, thereby reduce the duration experienced as it passes.

Even though it would begin to diminish once over land the system could still bring some sustained force into the surrounding states, which has agriculture and fertilizer interests within those in areas that include South Carolina, North Carolina and Tennessee feeling some concern.

With operations and facilities in the region Canadian fertilizer producer Nutrien said it was staying alert to the ongoing developments on Tropical Storm Helene.

“We are actively monitoring the tropical storm system and have comprehensive emergency response plans in place to ensure the safety of our people and operational integrity of our facilities,” said a Nutrien spokesperson.

While the storm may not directly strike Tampa, Florida, which is now under a hurricane watch and is a hub of the US fertilizer industry, there could be some major impacts felt, especially if it treks a little more southernly than initially expected.

In addition to the port operations there is numerous production, logistics, storage and fertilizer management assets in the Tampa area which can be at risk of damage whenever there is nearby tropical activity.

Major producer Mosaic, whose headquarters is in Tampa and has other surrounding operations, did not immediately comment on its storm preparation activities.

With the storm likely to not hit until late on 26 September there was a good amount of uncertainty over how severe Helene might turn out to be, with a market participant summing up the overall outlook by saying “we’re cautiously optimistic in Tampa, looks like it’s going to be well east of Nola so no concerns there yet.”

Beyond the fertilizer infrastructure and product threatened there is also the potential for even further weather damage to crops this season, with harvest underway on corn and soybeans but also for other crops like cotton and grain sorghum.

Across several southeastern states there is acreage which is mature and could be greatly damaged, if not ruined, if the wind levels or rainfall amounts are excessive in the coming days.

The wet conditions left afterwards will also limit post-harvest field activities like end of the year fertilizing and could see any fresh demand deferred, possibly even until next spring.