Mosaic cuts forecast for 2013 global potash shipments

Reuters

By Rod Nickel

Oct 7 (Reuters) - U.S. fertilizer company Mosaic Co on Monday lowered its outlook for 2013 global potash shipments,citing weaker demand in India and a delay in settling asecond-half contract between its export agency Canpotex Ltd andChina's Sinofert Holdings Ltd.

Mosaic Chief Financial Officer Larry Stranghoener, one ofseveral executives speaking to analysts in New York, said thecompany sees global potash shipments of 54 million to 55 milliontonnes, down from its previous estimate of 55 million to 57million tonnes but higher than 2012's 51 million.

Potash prices have slipped since mid-summer when Russianproducer Uralkali OAO quit its export partnership withBelarus and said it would seek to maximize sales volumes.

"I think one year from now, we are going to see the issuesthat came up in eastern Europe, that's going to be ancienthistory, life's going to go on," said Chief Executive OfficerJim Prokopanko.

"I think we'll see a recovery."

For 2014, Mosaic, the second largest North American potashproducer after Potash Corp of Saskatchewan, sees globalpotash shipments rebounding to 57 million-59 million tonnes.

Potash Corp, Mosaic and Agrium Inc sell potash tooffshore markets through the export consortium Canpotex.

Mosaic shares fell 1 percent in New York to $45.64.

Mosaic also lowered its 2013 outlook for global phosphateshipments by about 2 million tonnes to 63 million-64 milliontonnes, versus 63 million tonnes in 2012, mainly due to adecline in shipments to India. For 2014, Mosaic, the world'slargest producer of finished phosphate products, expects globalshipments to rise to 64 million-66 million tonnes.

Shipments of crop nutrients to India have taken a hitbecause of the decline of the rupee, which has made importedproducts more expensive there.

Mosaic and Potash Corp disbanded their joint exporter ofNorth American phosphate, PhosChem, last week. Rick McLellan, Mosaic's senior vice president,commercial, said the decision was made because Mosaic was nowproviding more than 90 percent of the association's volume.

Last month, Mosaic cut its third-quarter sales and priceoutlooks for potash and phosphate, citing the effects of the BPCbreakup.

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