Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Mosaic sees fertilizer demand supported by tight crop supplies into 2023

Stock Markets Aug 01, 2022 06:41PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Trains cars filled with phosphate pebbles leave Mosaic's South Fort Meade Mine in Fort Meade, Florida January 13, 2010.REUTERS/Scott Audette

By Ruhi Soni

(Reuters) -Mosaic Co said on Monday it expects tight grain and oilseed markets into 2023, encouraging the continued use of fertilizers despite their surging costs.

"The war in Ukraine, high temperatures in North America and Europe, and developing drought conditions in parts of South America highlight the risk for reduced yields globally," Mosaic said.

The world's fourth-largest fertilizer producer added supplies of crop nutrients potash and phosphates remain constrained after sanctions on Belarus and export restrictions in China.

Companies such as Mosaic have been raising production after sanctions on Russia and Belarus, the world's No.2 and 3 fertilizer suppliers.

The sanctions have worsened global supply shortfalls of crucial crop nutrients and sent their prices soaring. During the April-June quarter, prices of nutrients approached levels not seen since the 2008 food crisis, when the prices had hit an all-time high.

Mosaic, however, posted second-quarter adjusted earnings of $3.64 per share, missing analysts' expectations of $4.04 a share, as per Refinitiv data.

Net sales jumped 92% to $5.37 billion but missed consensus of $5.62 billion.

Mosaic, the world's largest producer of finished phosphate products, said net sales in its phosphates segment grew to $1.8 billion from last year's $1.2 billion.

CF Industries Holdings Inc (NYSE:CF), which overtook Mosaic in market capitalization during the quarter to become the world's third-biggest fertilizer maker, posted record quarterly profits.

Net income attributable to CF was $1.17 billion, or $5.58 a share, in the quarter ended June 30, from last year's $246 million, or $1.14 per share.

CF, primarily focused on nitrogen-based fertilizers, said it expects global nitrogen supply-demand balance to remain tight "for the foreseeable future", as the world rushes to replenish grains stocks to prevent a humanitarian crisis.

Mosaic sees fertilizer demand supported by tight crop supplies into 2023
 

Related Articles

Micron tempers fourth-quarter revenue forecast
Micron tempers fourth-quarter revenue forecast By Reuters - Aug 09, 2022

(Reuters) - Memory chipmaker Micron Technology (NASDAQ:MU) said on Tuesday that its fourth-quarter revenue may come in at or below the low end of the forecast range provided on...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email