(Updates with closing share price in second paragraph.)
Dec. 29 (Bloomberg) -- Mosaic Co., the world’s largest producer of phosphate fertilizer, fell as much as 3.9 percent in New York trading after saying it will cut output by as much as 250,000 metric tons through the first quarter of 2012.
Mosaic dropped 1 cent to $50.28 in New York. The Plymouth, Minnesota-based company has declined 34 percent this year.
Phosphate spot prices have become “disconnected” from the “underlying agricultural fundamentals” and aren’t sustainable, Chief Executive Officer Jim Prokopanko said in a statement issued after the close of trading yesterday.
Diammonium phosphate, a form of phosphate fertilizer, dropped 3.2 percent to $600 a ton for export from Tampa, Florida, in the last week of November, according to data from ICIS-LOR. It traded as high as $650 in September, the data show.
“As dealers and distributors focus on the macroeconomic uncertainty and delay purchases for the North American spring season, near-term supply of phosphate barges on the Mississippi River has exceeded near-term demand,” Prokopanko said.
Mosaic will publish its fiscal second-quarter earnings after the close of trading on Jan. 4. Volumes and pricing for both phosphate and potash were within guidance ranges for the quarter, the company said.
“We continue to expect an above-average application season in North America and record-setting global demand for both phosphate and potash in 2012,” Prokopanko said. “We are confident strong farmer economics and agricultural fundamentals will ultimately prevail over the near-term cautious sentiment.”
--Editors: Tina Davis, Amanda Jordan
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