The Mosaic Co. today updated its near-term market outlook for its potash and phosphates. It said since it announced fiscal fourth quarter guidance on March 28, 2012, domestic and international crop nutrient markets have strengthened significantly, meeting the upper end of management’s initial expectations and resulting in an improved near-term volume outlook.
"Global demand for crop nutrients has increased sharply, driven by an early and strong spring season in North America, combined with increasing shipments to South America," said Mosaic President and CEO Jim Prokopanko. "We expect demand to continue to grow, and crop nutrients to remain affordable. We anticipate another year of high farm income in North America – the second highest on record – and strong farm economics around the world. Our long-term outlook for the business is positive."
In light of the rapid acceleration in demand, the company believes fourth quarter fiscal 2012 volumes for both potash and phosphates will be in the upper end of the guidance ranges. As previously disclosed, these guidance ranges are: Potash: 1.7 to 2.2 million mt and Phosphates: 2.3 to 2.7 million mt.
The forecast continues to anticipate limited North American inventory re-stocking at the end of the spring application season.
All other guidance, including pricing and phosphates segment margin expectations, is unchanged.