Mosaic provides market update

The company said, "Grain and oilseed markets are expected to remain tight through 2022 and 2023. The disruption to Ukraine’s agricultural production caused by war, coupled with poor growing conditions in several major growing regions like the Americas, Europe and China, have resulted in lower global agricultural production. This suggests that global stocks-to-use ratios, already projected at 20-year lows, will remain under pressure. Historically elevated crop prices, coupled with fertilizer pricing that has moderated from the post-Ukraine-invasion spike, justifies a return to normal nutrient applications. In North America, sentiment has improved significantly from the spring season. As a result, fall nutrient application rates are trending toward normal levels, and this is expected to deplete channel inventories. In Brazil, nutrient prices remain historically elevated but have retreated to levels that are incenting in-country shipments, which are expected to pull year-end inventories down to levels comparable to last year. In India, government subsidies, particularly for phosphates, are expected to remain at levels that support imports. For both potash and phosphates, supply constraints remain. In potash, we maintain our expectation that annual production from Belarus will be down 8 million tonnes year-over-year in 2022, and very little recovery is expected next year. In phosphates, China’s exports are estimated to be reduced by as much as 5 million tonnes versus 2021, and current export restrictions are expected to be extended into 2023. Together, the fundamental tightness in global markets for both potash and phosphates is expected to persist well into 2023 and quite likely beyond."