US Mosaic to curtail phosphate production

29 December 2011 00:07  [Source: ICIS news]

HOUSTON (ICIS)--Mosaic plans to reduce its production of finished phosphate by up to 250,000 tonnes through 31 March so that spot prices more accurately reflect demand, the US-based fertilizer producer said on Wednesday.

"Isolated phosphate market spot prices have become disconnected with the underlying agricultural fundamentals,"
Mosaic CEO Jim Prokopanko said.

"As dealers and distributors focus on the macroeconomic uncertainty and delay purchases for the North American spring season, near-term supply of phosphate barges on the Mississippi river has exceeded near-term demand."

He added: "The current spot prices in this market do not reflect our outlook for the business, nor do we think they are sustainable."

Prokopanko said Mosaic expects an above-average fertilizer application season in North America.

"We are confident strong farmer economics and agricultural fundamentals will ultimately prevail over the near-term cautious sentiment," he said.

By: Brian Ford
+1 713 525 2653

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