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Agrium (AGU -2.2%) and Potash (POT -3%) are finishing lower after Mosaic (MOS -3.6%) reports...

Agrium (AGU -2.2%) and Potash (POT -3%) are finishing lower after Mosaic (MOS -3.6%) reports in-line May quarter EPS to go with a revenue beat, as weak prices offset strong potash/phosphate sales. Mosaic also issued soft price guidance for the August quarter, made cautious remarks about Indian demand (citing subsidy cuts), and hinted Chinese customers are looking for lower prices. "Chinese buyers will be sorely tempted to pull the trigger if we go below anything where we're at today." The company plans to run its Canadian mines at less than 75% of capacity this quarter, ostensibly for maintenance. (Mosaic transcript)
Comments (5)
  • Jason Burack
    , contributor
    Comments (1721) | Send Message
    Exploration budgets being drastically cut, growth projects being postponed or cancelled and current production being cut drastically? This is what bottoms are made of. Not sure how long the bottoming process takes, but more supply is not coming online without higher prices.
    16 Jul 2013, 05:13 PM Reply Like
  • Augie91
    , contributor
    Comments (236) | Send Message
    +1 We are nearing a buy phase for MOS.
    16 Jul 2013, 09:50 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11015) | Send Message
    LOL India needs a lot more food and China's much richer and can afford more for growing. The issue is this industry can't stop over producing for no logical reason.
    16 Jul 2013, 11:25 PM Reply Like
  • Jason Burack
    , contributor
    Comments (1721) | Send Message
    Farmers also do not have to use fertilizers every single year I believe. I believe they can wait a few years between re-ordering more fertilizer.
    16 Jul 2013, 11:35 PM Reply Like
  • Mike Arnold, CFA
    , contributor
    Comments (1660) | Send Message
    Why didn't Orascom Contstruction trade down on the news? Oh yeah, no one knows they have a significant fertilizer business.
    17 Jul 2013, 12:47 AM Reply Like
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