|Bid||17.95 x 900|
|Ask||18.06 x 4000|
|Day's Range||17.95 - 19.15|
|52 Week Range||17.95 - 37.37|
|Beta (3Y Monthly)||1.75|
|PE Ratio (TTM)||27.25|
|Earnings Date||Nov 4, 2019|
|Forward Dividend & Yield||0.20 (1.05%)|
|1y Target Est||29.79|
(Bloomberg Opinion) -- The fires currently consuming Brazil’s Amazon rainforest seem a world away from the tense diplomacy in the U.S. trade war with China. In truth, they’re more closely connected than you might suspect.One of Beijing’s main acts of retaliation in the fight has been to freeze purchases of the 30 million metric tons to 40 million tons of American soybeans it imports each year. That’s left it more dependent than ever on Brazilian soy to take up the slack. Chinese imports from Brazil in the 12 months through April came to 71 million tons, about as much as it imported from the entire world in 2014. As we’ve written, that’s driving an investment boom into Brazil’s farm sector, with major agribusiness players such as Nutrien Ltd. and Mosaic Co. shifting their focus to South America to take advantage of Beijing's desire to diversify away from dependence on U.S. food supplies. In a sense, this shouldn’t have a direct impact on the Amazon. Most Brazilian soy is grown in the cerrado, a vast area of savannah to the south and east of the rainforest. Agricultural investment has concentrated on converting cerrado land currently used for pasturing livestock into row-crops like soybeans. That process should be able to result in a huge expansion of arable land without touching the Amazon. The trouble is, even Brazil has a finite amount of land and if you squeeze the balloon in one place, it risks popping out in another. As it is, most of the expansion of Brazil’s arable land over the past decade appears to have come at the expense of regrowth forest, which tends to be less well-protected than primary forest like the Amazon. This year’s fires could see ranchers driven out of the cerrado by arable crops to seek new pastures in freshly-cleared former rainforest in the Amazon.That’s particularly dispiriting because preservation campaigns appear to have started paying off in recent years, with clearing of Brazil’s primary rainforest almost brought to a halt over the past decade despite the ongoing felling of regrowth woodlands. President Jair Bolsonaro has already promised a more aggressive approach to developing the Amazon, scorning environmental concerns and jokingly referring to himself as “Captain Chainsaw.” Even when activity is kept away from the Amazon, land conversion has a damaging effect on the atmosphere. Brazil’s cerrado pastureland can be quite densely forested, with livestock grazing beneath the open canopy of the trees. Converting that to row crops necessitates uprooting those carbon-sequestering trunks, one reason it’s such a costly and difficult process. In addition, pastureland trampled by livestock is quite effective at locking atmospheric carbon up in the soil, but arable fields tilled every year fail to make as much difference.It’s still hard to tell exactly who is responsible for the 84% increase in fires in Brazil’s forests over the past year. The intensity of the infernos is likely the result of drought, although the rising number of blazes almost certainly comes from an increase in deliberate human activity. More than half of outbreaks have been in the Amazon, with another 30% in the cerrado and most of the rest in the coastal Atlantic forest.The danger of the current situation is that China’s hunger for soy may derail the halting recent progress in ending deforestation. The European Union in June concluded a trade agreement with the South American Mercosur bloc after two decades of negotiation, but Bolsonaro’s insouciant attitude to the Amazon represents a stumbling bloc for European governments who are needed to ratify the deal. Brazil’s agribusiness sector has even lobbied Bolsonaro’s government to take greater steps to halt deforestation, out of fear that his confrontational stance could jeopardize the EU-Mercosur deal and hurt their exports.China, on the other hand, tends to be a much more hands-off trading partner, and long-standing concerns about food security mean Beijing has been unusually solicitous of Brazil’s approval. If anything could nudge Bolsonaro toward ignoring his country’s land barons and following his instincts instead, it’s the prospect of a rich alternative source of foreign exchange from China.This would be a miserable and unexpected outcome from the current trade war. Despite coming to office on a pledge to revive the coal industry and tear up environmental rules, President Donald Trump has mostly failed to reverse the greening of America’s power sector and the auto industry’s drive toward lower tailpipe emissions.His trade fight with an equally carbon-addicted China, however, encouraged that country to embark on a ruinously carbon-intensive industrial stimulus last year, and may now be driving Brazil to uproot more of its forests. The grimmest climate legacy of the Trump administration may well come not from energy policy, but from trade.To contact the author of this story: David Fickling at email@example.comTo contact the editor responsible for this story: Patrick McDowell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
German minerals miner K+S reported higher second-quarter revenues and core earnings on Thursday, citing higher fertilizer prices and higher potash production volumes at its Werra plant in Germany and the Bethune plant in Canada. The company also narrowed its full-year outlook range for earnings before interest, tax, depreciation and amortization (EBITDA) to between 730 and 830 million euros from previous 700 million euros to 850 million euros range.
The Mosaic Company (MOS) announced today that its Board of Directors declared a quarterly dividend of $0.05 per share on the Company’s common stock. There can be no assurance that the Company’s Board of Directors will declare future dividends. The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients.
U.S. stocks rose on Tuesday as China stepped in to stabilize the yuan, soothing concerns that currencies would be the latest weapon in the long-drawn trade war, a day after Wall Street suffered their sharpest one-day percentage drops of the year. China's overnight intervention came after the U.S. Treasury Department labeled Beijing as a currency manipulator as it let the yuan slide to a more than decade low on Monday. A steep fall in the Chinese currency had led the benchmark S&P 500 and Nasdaq record their sixth straight session of declines, losing at least 3% each in the previous session.
U.S. stocks rose on Tuesday, helped by technology shares, as China stepped in to stabilize the yuan, a day after Wall Street's main indexes suffered their sharpest one-day percentage declines of the year. The benchmark S&P 500 and Nasdaq lost at least 3% each on Monday, after China let the yuan slide, prompting the U.S. Treasury Department to label Beijing as a currency manipulator. "The fact that China stabilized its currency gives investors some hope that this won't accelerate into a bigger problem," said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
(Bloomberg) -- The world’s top two fertilizer makers have emerged from a tough crop-planting season in the U.S. very differently: one bruised and the other relatively unscathed.World No. 2 crop-nutrient maker Mosaic Co. reported adjusted earnings that missed analyst estimates for the second quarter, during which the U.S. Midwest was in the grip of the wettest 12 months on record that kept farmers away from fields. The Minnesota-based company was hurt by falling sales volumes and weak margins for phosphate, which is used in nutrients that help plants grow.The firm also reduced its full-year forecast, and analysts say it may have to cut its view again. Shares of the company slumped as much as 13%, the most in six years. The stock has declined 29% this year.Mosaic’s results stand in contrast to Nutrien Ltd. -- the top producer -- which reported earnings and revenue that beat analyst estimates in the quarter. The Saskatoon, Saskatchewan-based company was aided by higher prices for potash, which forms the basis of a different class of crop fertilizers.New York shares of Nutrien, which have risen about 9% this year, swung between gains and losses on Tuesday. At 10:31 a.m., they were down 1.7%. The company was able to ship its potash nutrient to the U.S. Midwest from Saskatchewan in Canada during the second quarter, helping its results.Mosaic’s phosphate-based product, meanwhile, was stuck in the flooded Mississippi River on its way to the Midwest due to the unrelenting rains in the U.S.Trapped Supply“As a result of weak spring demand and a high level of imports trapped in the lower Mississippi River, market prices remained under pressure and the seasonal price improvement we typically see in the second quarter did not materialize,” Mosaic Chief Financial Officer Clint Freeland said during an investor call.Diverging prices of the two fertilizers also help explain the companies’ differing fortunes. Phosphate has declined by $107 a ton from 2018’s peak in October on reduced fall and spring demand due to wet weather and higher-than-expected imports in the season, Bloomberg Intelligence estimated last month, adding that it could remain under pressure because of new capacity in the second half.At the same time, potash prices last month were $15 a ton higher than a year earlier and $10 a ton above the seasonal five-year price, according to Bloomberg Intelligence, which said strong global demand and a slow ramp-up of new capacity supports a positive outlook.While Mosaic announced in June the permanent closure of its Plant City phosphates facility, Nutrien said last month that it plans $1 billion in investments in Brazil. It will compete in the Latin American nation with Mosaic and Norway’s Yara International ASA, two companies that INTL FCStone Inc. estimates account for 46% of total sales in that market.To contact the reporters on this story: Denitsa Tsekova in New York at email@example.com;Ashley Robinson in Winnipeg (Non BLP Loc) at firstname.lastname@example.orgTo contact the editors responsible for this story: James Attwood at email@example.com, Pratish NarayananFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Mosaic (NYSE: MOS ) reported second-quarter earnings of 12 cents per share, which missed the analyst consensus estimate of 29 cents by 58.62%. This is a 70% decrease over earnings of 40 cents per share ...
Mosaic (MOS) delivered earnings and revenue surprises of -60.00% and -3.35%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
U.S. fertilizer company Mosaic Co cut its full-year earnings forecast and posted a lower-than-expected profit, as rains and flooding in the United States hit its volumes and phosphates margins, sending its shares down as much as 12.3%. Severe flooding in the U.S. farm belt across Iowa, Nebraska, South Dakota and several other states delayed spring farming and has hit agricultural companies like Mosaic, which sell fertilizers directly to farmers. Mosaic cut its 2019 adjusted profit forecast, for the second time, to between $1.10 and $1.50 per share, from $1.50 to $2.00 per share, to reflect lower than expected sales volumes in the first half and a slower recovery of phosphates margins.
Mosaic's property is the Port Redwing area and would provide more than 25 acres for a ferry terminal.
In Q2, Mosaic (MOS) is expected to recognize a non-cash charge of roughly $390 million related to the permanent closure of the idled Plant City phosphates production facility.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Brazilian farmers will likely spend more money on soybean farming in the coming season as the U.S.-China trade war continues to leave room for the South American powerhouse to increase its grip on the title of world’s biggest exporter of the oilseed.Crop-nutrient giants Mosaic Co. and Yara International ASA expect fertilizer deliveries to Brazilian producers will reach a record. Planting in the country starts in September and most of the sales for the coming season have already been made, underscoring the confidence in the forecasts.Brazil has benefited from China’s yearlong trade dispute with the U.S., the second-biggest soybean exporter. A spring deluge that threatened crops in the U.S. Midwest gave the South American country an added advantage.While not providing an outlook for Mosaic’s sales, Eduardo Monteiro, the company’s supply director in Brazil, forecasts that deliveries will rise 2.8% this year to 36.5 million metric tons. The gain will come as farmers spend more to help ensure a good harvest and as soy plantings climb by about 0.8%, he said, estimating that producers have already bought about 80% of the fertilizer they need.“Farmers are in a good mood after a record corn harvest, profitable soybean prices and good prospects for shipments amid the ongoing trade war and weather issues in the U.S.,” Monteiro said in a telephone interview.Yara expects Brazil’s soybean planted area to rise by 2.5% this season as farmers divert pastureland and sugar-cane areas to the oilseed. That will lead fertilizer demand to increase by more than 2% in 2019, according to Cleiton Vargas, the company’s sales and marketing vice president in Brazil.“Fertilizer demand remains promising amid uncertainties over the trade war between China and the U.S.,” Vargas said by email.Even as the amount of fertilizer deliveries should reach an all-time-high, the growth pace is starting to slow. The forecasts from Yara and Mosaic, which together account for about half of Brazil’s fertilizer sales, are below last year’s increase of about 3% reported by the industry group Anda.Demand was slower than usual in March and April, and it’s still sluggish for this time of the year due to rising fertilizer prices in the country, according to Simone Correa, a market analyst at GlobalFert consultancy. She expects deliveries to increase between 1% and 1.5% this year.To contact the reporter on this story: Tatiana Freitas in São Paulo at firstname.lastname@example.orgTo contact the editors responsible for this story: James Attwood at email@example.com, Millie Munshi, Patrick McKiernanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- With trade talks collapsing between the U.S. and China in Shanghai on Wednesday, there’s even less hope of any resumption in American farm exports, which were once portrayed as the foundation of any agreement.That’s not good enough, according to President Donald Trump:Had a trade detente materialized, those expecting a rapid return to the status quo on farm trade likely would have found themselves disappointed, anyway. The current tensions have dealt a lasting blow that could take decades to heal.To understand why, consider Chinese Foreign Minister Wang Yi’s visit to Brazil last week. Relations between Beijing and Brasilia have been rocky ever since the election last year of President Jair Bolsonaro, a pro-Trump populist who has accused China of trying to buy Brazil and angered Beijing with a visit to Taiwan during his election campaign.The tone from China has been conciliatory, though, even in the face of personal snubs, with Wang promising two meetings between Bolsonaro and President Xi Jinping later this year. That’s a remarkable display of pragmatism for a country that can be exceedingly prickly about its diplomatic dignity.The best explanation for this is Beijing’s legendary anxiety about food security. China’s staple crops of rice, wheat and corn are protected with tariffs as high as 65% to ensure the country doesn’t become dependent on imports.(1) While Trump has been keen to increase farm revenues in the Republican-voting grain belt, his willingness to turn exports of U.S. technology into a bargaining chip naturally raises the prospect of Washington some day turning food supplies into a cudgel, too.In recent decades, episodes when major commodity exporters threatened their trading partners often sparked the development of new supplies in other countries. The 1973 Arab oil embargo was the catalyst for the development of new oilfields in the North Sea, Alaska and Siberia. The fact that soybeans are grown in Brazil at all owes a great deal to another 1973 embargo, when President Richard Nixon sharply cut exports to Japan to prevent domestic supplies from running short.Japanese investment was so crucial to developing Brazil’s Cerrado savanna for soybean in the following decades that one of the main local cultivars is named after Toshio Doko, a leading figure of Japan’s postwar industrialization.The current trade tensions look to be extending the shift that Nixon started.Back in May, the U.S. Department of Agriculture announced that Brazil was set to overtake the U.S. as a producer of soybeans in the current crop year. Since then, the devastation wreaked by flooding in the U.S. Midwest has increased South America’s lead. Traditionally, the two countries exported roughly equal quantities of soybeans; in the coming harvest, Brazil will ship about three metric tons of oilseeds for every two tons dispatched from American ports.Agricultural companies are already moving to take advantage. Nutrien Ltd. will spend $200 million to $300 million a year over the next five years to build up its presence in Brazil, Chief Executive Officer Chuck Magro told Denitsa Tsekova of Bloomberg News on Tuesday. That pace of growth, equivalent to as much as a fifth of capital spending at current rates, is a remarkable shift for a company that’s historically had a minimal presence in the country. Revenues from external customers in Brazil came to just $112 million in 2018, about 0.6% of total third-party sales.It’s a similar picture with Nutrien’s chief North American rival, Mosaic Co., which now gets a larger share of its revenue from Brazil than the U.S. following the acquisition of Vale SA’s fertilizer business last year: “While the trade war is certainly going to affect U.S. farmers, it created an opportunity for Brazilian farmers,” James O’Rourke, Mosaic’s chief executive officer, told an investor call in May. “China will get their grains and oilseeds and it’s just a matter of where those come from as opposed to whether they come. But clearly this trade war is not good for the U.S. farmer. I mean that is an absolute given.”One might think that such a shift would strain the capacity of Brazil’s farmland, but it still has ample potential to increase production. Converting pastures used for feeding livestock into arable land for grains and oilseeds could add 43 million hectares in the Cerrado region where most of the country’s soybeans are grown, local grain producer SLC Agricola SA told an industry conference last year. That would increase the area under such crops by about half.China’s main motivation in halting imports of U.S. farm produce has been trade retaliation, but don’t underestimate the way that temporary moves can become permanent. At present, Beijing may be hunting for alternative sources of nutrition to punish Washington. In the future, it could start doing so for its own sake. (Updates to reflect the status of trade talks.)(1) There's a small quota allowed in with lower levies, but it's rarely fully utilized and represents only a small fraction of overall demand.To contact the author of this story: David Fickling at firstname.lastname@example.orgTo contact the editor responsible for this story: Rachel Rosenthal at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Mosaic (MOS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The Mosaic Company (MOS) plans to release 2019 second quarter earnings results on Tuesday, August 6th, 2019, at 6 a.m. Eastern Time. The Company will host a conference call to discuss the results on Tuesday, August 6th, 2019 beginning at 9:00 a.m. Eastern Time. A webcast of the conference call, including the presentation slides, can be accessed by visiting Mosaic’s website.