Francine charges through Louisiana but fertilizer industry appears to emerge fairly well

HOUSTON (ICIS)–Hurricane Francine charged through southern Louisiana and although it gave plenty of soaking rains to the communities and businesses it passed through, most of the fertilizer industry within Louisiana appears to have weathered the storm fairly well.

With 100 mile/h winds, Francine was a Category 2 storm at landfall but as of late Thursday, was categorized as a post-tropical storm and was located south of Memphis, Tennessee, with winds down to 25 miles/h and moving north at 9 miles/h.

Having a short window as Francine quickly developed and advanced in strength and speed, the domestic fertilizer participants and companies rapidly put their response plans into action over the first part of the week and prepared for the storm.

The industry in the Gulf Coast region does have the experience of having to face these threats often, so they are familiar with the challenges and dangers presented but also have constructed facilities and other assets to withstand a tropical storm or hurricane.

In New Orleans, there were winds measured at a top speed of 70 miles/h and there was tremendous amount of rainfall with an estimated total from Francine placed at 8.43 inches, with parts of Mississippi having received over 6 inches.

Still even with the gusty winds, the city and the fertilizer infrastructure were not significantly struck considering past events faced by this community, with a market source saying that barge operations are seeing all cargoes accounted for.

Over in Geismar, despite some reports that there were issues, Canadian fertilizer major Nutrien said it did not have any complications.

“Fortunately, we had no impact at the Geismar nitrogen site. Our people are safe and the plants remain operational,” said a Nutrien spokesperson.

Yet not all apparently fared as well because there was talk that producer Mosaic is understood to have its Faustina operations offline, but it has not confirmed any plant status.

While in Donaldsonville, the power supply is understood to have been restored leading to expectations that there will be a resumption of production occurring soon.

Producer CF, who has a large nitrogen complex in this location, has not responded to requests for comment about its storm preparation and has previously stated it will not comment on plant operations.

The next big concern will be over how extensive the crops were damaged, which could take some time to determine.

Yet with the fierce winds and strong downpours already experienced it is likely that vulnerable crops like cotton and corn would have been impacted.

Although with the lesser severity of the storm, it is possible the impacts on other vital acreage like sugarcane and rice have not been as affected.

There have already been concerns over farmers facing reduced income levels this year which has been heightened by crop price pressures and has weighed on fertilizer commitments.

Combined, these factors make any prospects of lost yields and washed-away profits a real concern for both growers and fertilizer participants.