Phosphate Producer Mosaic Falls to Lowest Since February on Sales Miss
Phosphate Producer Mosaic Falls to Lowest Since February on Sales Miss
(Bloomberg) -- Mosaic Co., the world’s largest phosphate producer, saw its shares fall the most since February amid signs of weak sales.
Mosaic sold 1.8 million tons of phosphate in the third quarter, down from last year’s 2.1 million tons, according to a statement detailing third quarter earnings. Potash sales also dropped.
Prices for fertilizer have surged in recent months as soaring natural gas costs have forced some European production plants to halt or curtail production, in addition to severe weather and government sanctions already putting pressure on prices. At these levels, analysts have raised concerns that farmers might not be able or willing to buy.
“Phosphate volume was lower than we thought, even after adjusting for issues related to Hurricane Ida, while cost pressure was a little more than expected,” Scotiabank analyst Ben Isaacson said in a note.
Mosaic shares fell as much as 10.5% to $37.10 per share. Shares of Nutrien Ltd., the world’s largest crop-nutrient supplier that reported earnings Monday, fell as much as 3% to $85.79 a share.
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