As Francine ramps up fertilizer industry prepares for impacts in Louisiana and beyond

HOUSTON (ICIS)–Having lashed out across northern Mexico and south Texas with rain and winds over the past 24 hours, Tropical Storm Francine has started to track further with an expected landfall in Louisianna as a moderate hurricane on 11 September.

With numerous manufacturer plants, storage and shipping operations, especially within New Orleans, the state of Louisianna is an important segment for the US fertilizer industry, which has quickly turned more concerned over the possible hurricane.

Especially as the tropical threat has increased in the last 36 hours and possibly bringing even more destructive impacts than initial thought over the coming days.

High winds, heavy rainfall and subsequent flooding is a part of the immediate forecast with the acreage in the path of Francine maybe being subject to crop damage and significant inundation.

This could decrease yields, halt harvesting and will hold back any additional field work for several weeks, including any fall fertilizing.

For now, the focus is on preparing as much as possible for what might develop within the next 24 hours with producer Nutrien said it was keeping watch and was getting ready.

“We are actively monitoring the situation surrounding Tropical Storm Francine and have comprehensive emergency response plans in place to ensure the safety of our people and operational integrity of our facilities,” said Nutrien spokesperson.

CF Industries, with considerable operations in the storm’s project path, has not responded to inquiries over plans for storm preparation or maintaining operations.

Also, without comment has been producer Mosaic, but ammonia sources said it was expecting the storm would have little bearing on current activity as it is still a quiet period for the nutrient.

A phosphate source said some imports volumes which were scheduled to arrive soon have been delayed a bit because of these renewed weather concerns.

Overall the cautious but not overly concerned sentiment is prevalent with it likely due to the less severity of this potential hurricane, but also because the fertilizer industry has weathered some challenges in recent years like the pandemic and international conflict.

Given the past events experienced, an industry source said “I think the market has shrugged it off so far because that’s how we’re doing most shocks so far this year and it’s worked”.

Late on Tuesday afternoon Tropical Francine was at a wind speed 65mph and moving northeast at 10mph with their predictions that it will strengthen further as it moves closer to landfall estimated now to be sometime during Wednesday.