Long-term crop nutrient outlook good as uncertainties continue

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

Despite the drought and other environmental factors reducing grain yields all over the world, Mosaic Company expects a strong market for crop nutrients over the long haul.

"The long-term outlook for crop nutrition is outstanding, and Mosaic is well positioned as the world's largest potash and phosphates producer," said Jim Prokopanko, president and chief executive officer of Mosaic. "Drought and other weather-related issues in several of the world's key agricultural regions severely impacted this year's corn, soybean and wheat crops and provided a vivid reminder of just how tenuous global food security is. Our products are essential in helping the world grow the food it needs."

Mosaic released its reports for the first quarter fiscal 2013 this week and provided a glimpse into the global forces impacting the market. Some of the highlights of progress from the report for Mosaic include:

  • Potash expansion projects continue to be on time and on budget with expenditures of $158 million in the quarter.
  • Mosaic ramped up production at South Fort Meade to full capacity, replenished phosphate rock inventory and plans to resume shipping rock to its facilities in Louisiana in the second fiscal quarter.
  • The company has committed additional capital to continue the feasibility work to expand the company’s ammonia production capacity.
  • Mosaic launched “Pursuit of 300: The Road to Higher Yields,” a program that uses farmers’ real-world experiences as a launch pad for agronomists, researchers, retailers and industry stakeholders to create the next generation of cropping systems.

Turning to the phosphate side of the business, Mosaic explained the market issues.

"The phosphate market continues to be tight, with low producer inventories and supply uncertainties," Prokopanko said. "During the quarter our production was impacted by longer annual maintenance shut-downs and challenges posed by hurricanes, and our sales were further impacted by low beginning inventories and low Mississippi River levels. As a result, demand for our products outpaced our ability to produce and deliver; we expect better execution in the quarters ahead."

Prokopanko went on to explain other impacts impacting worldwide fertilizer demand and consumption.

"While current sentiment is being affected by volatile markets and challenging weather conditions, farm economics remain compelling. Crop nutrients have never been more affordable, and farmers around the world continue to have strong incentives to use our products to increase crop yields. Our capital strength, global reach and unique asset base position us well to continue to help the world grow the food it needs while generating long-term shareholder value," said Prokopanko.

Waiting on China’s Potash Contract

Mosaic also announced this week that China may not sign its potash supply agreement with North America’s largest potash producers until next year. China appears to be holding out for lower prices than the ones paid in the first half.

China is “very determined” to pay less than the $470 a ton it negotiated for the first six months of 2012, Prokopanko said. The standoff is being exacerbated by the country increasing its rail imports from Belarus.

Prokopanko said China could wait through the rest of 2012 without purchasing more potash. They may even wait as long as into the first of 2013.

In the meantime, India is not expected to sign its potash supply agreement with North American producers until China settles its contract first. Imports into India have been cut due to a weaker rupee and budget cuts.


Prev 1 2 Next All



Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...


Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


X-TENDED REACH GRAIN CARTS

YOUR BEST HARVEST IS NOW WITHIN REACH J&M introduces their patented line of X-tended Reach grain carts, featuring a frontfolding single ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form