In announcing its fourth-quarter results, Mosaic said its average selling price for potash was 30 percent lower than a year ago but had leveled out, bringing back customers who were holding back on orders until they perceived they could get the lowest price.
""Customers believe a bottom in potash prices has been reached and are now exhibiting improved confidence in their buying decisions," Mosaic CEO
In an interview with the
The decline in potash, which accounts for about one-third of Mosaic's revenue, was driven by the collapse last summer of a cartel of commodity producers in
The fall in potash prices also helped spook the market for phosphate fertilizer, Mosaic's other big product. But phosphate has been recovering, too, and even stronger so far than potash. Mosaic had record phosphate shipments during the fourth quarter, and phosphate prices are up about 40 percent since the beginning of the year.
Lower prices for both goods constrained Mosaic's financial results in the second half of 2013. For the just-ended fourth quarter, Mosaic reported a net profit of
Revenue from potash was down 10.2 percent while revenue from phosphates fell 6 percent. Mosaic said it shipped record volumes of both products in the quarter.
Mosaic also announced a plan to buy back
The positive news about a rebound in phosphate and potash markets helped push up Mosaic's stock by about 3 percent. It was trading at
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