US fertilizers assess damages, determine delays following hurricane strike

HOUSTON (ICIS)–The US fertilizer industry along with their agricultural counterparts were trying to assess damages and determine how long activities might be limited or even remain halted as Hurricane Helene delivered a mighty strike with intense winds and tremendous rainfall leading to historic flooding.

Across several southeastern states the severity of the impacts affected plant operations and loadings with confirmed issues in Florida, Georgia and North Carolina with some damage reported at the port in Tampa, Florida, which did reopen on 29 September.

There was also localized flooding within the city and surrounding communities but the fertilizer hub with its vital production, storage and logistical assets missed the full wrath of the hurricane, which had rapidly intensified before making landfall.

Producer Mosaic had earlier informed that it did experience some issues with its operations in Florida as there was water intrusion at its Riverview site, which was caused by storm surge that has left the facility offline.

A site cleanup must be undertaken so the operations are not anticipated to see a return to full capacity for about 10 days, but Mosaic did not respond for further comment on whether it had experienced any other impacts to its business activities.

Canadian fertilizer major Nutrien said it is still evaluating the total impacts of the hurricane landfall but while its Aurora facility in North Carolina experienced heavy rainfall, the facility did not close during the event and is fully operational.

The producer said it did undertake precautionary measures at other sites.

“Following Hurricane Helene’s landfall last Friday, Nutrien’s Augusta, Georgia, and White Springs, Florida, facilities were shut down under safety protocols during storm-induced power failures,” said a Nutrien spokesperson.

“All our colleagues are safe at these locations, but many area roads remain closed due to downed power lines and flooding. It could be several more days before a post-storm assessment is complete.”

For fertilizer interests overall there was optimism that while the storm potentially wiped out what crops had not been finished in some locations, it should not have a lingering sway on upcoming demand or supply availability once flooding recedes and acreage dries as there is still plenty of acreage left to complete.

As an industry source said, “I don’t think it matters at all. We just need some more harvesting so farmers can think about application.”

Corn harvest is now 21% complete, while soybeans have reached 26%.

While September has been treading a tad slower than normal, with repeated tropical weather threats a key factor, there was sentiment that when looking ahead at October there will be more traction forward for some products.

As a trader said, “I think prices will move up on UAN [urea ammonium nitrate] because of the supply disruptions but hard to say how much. Phosphate is probably the most bullish out of everything, urea doesn’t really have an impact.”

The extent of crop damage will not be clear for at least several days, maybe longer. The concern is still that a reduction in yield means a drop in income back to the grower who then will have more pressure on how to manage upcoming input expense.