Fertilizer industry back in action having emerged mostly unscathed by Francine

HOUSTON (ICIS)–As the remnants of what was Hurricane Francine continues to inundate and bring severe weather threats to parts of the southern US, the fertilizer industry in Louisiana was back in action on Friday having emerged mostly unscathed by the storm.

Having escaped any confirmed property damage, with the largest obstacle the loss of power, plant facilities were said to be back online, with fertilizer producers including Nutrien having confirmed the lack of impact from Francine which made landfall on 11 September.

Most of the problems faced in the last few days have been delayed and halted logistics given the fierce winds and heavy rains along with the brief stoppage of railroad and port operations.

A common refrain was echoed by a producer source who said, “we had some logistical issues but no physical damage”.

In Donaldsonville fertilizer producer CF Industries was heard to be back in production and loading supply as the storm brought some disruption to their transportation schedule.

The company has not commented during this event but as a trader said, “CF now back running. Barges likely to get sorted over the weekend and river likely to be back open”.

With the port in New Orleans (Nola) back in operation there was also further urea barges business done with expectations of a significant period of post-harvest application over the upcoming weeks not washed away by the recent weather.

Harvesting campaigns have taken a hit and will be delayed for several days, possibly even longer depending on rainfall amounts.

The concern is with a delay in these activities it creates an additional lag for starting post-harvest field activities like end of the year fertilizing.

The real impact of this storm and its subsequent sway on domestic fertilizer direction likely comes once the extent of crop damage is understood, with the storm having arrived as there was considerable acreage nearing maturity or being harvested across several states.

Lost of yields causing a reduction in income could mean a decrease in buying for immediate supply or reduced interest in pre-pay commitments.