The Mosaic Company (MOS) 12 Nov 242024 Q3 Earnings call transcript

Good morning, everyone, and welcome to The Mosaic Company's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please also note, today's event is being recorded. I would now like to turn the floor over to Jason Tremblay. Please go ahead.

Thank you, and welcome to our Third Quarter 2024 Earnings Call. Opening comments will be provided by Bruce Bodine, President and Chief Executive Officer, followed by a fireside chat and then open Q&A. President President, Financial available Commercial, your Vice Wang, and to Executive questions. Vice Executive will Freeland, and Officer; Chief Jenny answer Clint also be

cause projected uncertainties. statements are during to be and about statements actual the are Actual release today's risks beliefs Commission. could and are significant may conference forward-looking in Factors and will they results financial with in are and statements included statements subject results, reports on We call. limited to making future and and The our date press results from materially forward-looking results. those materially based include, our from published operating differ to, today Exchange Securities filed expectations but that differ not of this the management's in as

financial be We will also certain presenting measures. non-GAAP

Our information important also press on these data and release measures. contain performance non-GAAP

Bruce. Now, over call I'd to to turn like the

for by Hurricanes incidents, to that with would prepare it Good and Mosaic's made I people and morning. help call. great you especially I'm safety Milton. damage. storms so Helene of through we by physical no from recover no the no joining significant done events for environmental and acknowledging the Thank many our start Francine, us to pleased material like work

running impacts returning within I'm dedication, and home, the came weeks Milton at operating up to together X full Because normal they team. of Even we after of back quickly days. their were locations some rates the dealing Florida our get as people after grateful were operations storms. extremely our with back in at just to most with to Louisiana Florida as and storm Central could possible ensure as

at plans want retire Officer into get I and results, end Freeland Mosaic's this announcement we of Before morning Chief year. as Executive that Financial Clint the President this to address Vice to also our our

financial Mosaic's the wish years I thanks allocation the are an best ago. all has were his profile much outstanding want program CFO retirement. they my time we stronger X company. his been extend with Mosaic, arrived Clint and than him sincere and leadership, to During for capital Clint in his for when

forward will transition, of worthy XXXX, on the we're Luciano look part at also this Vale Business Siani planned Luciano will to company's so of XXXX, previously part confident as assumes January Strategy Fertilizantes will be later third and Pires Clint Mosaic's X, the Directors Designate and Luciano the XXXX. On we third following of us. Transformation. the was the were CFO November CFO company results. he Board of our join to acquisition and to EVP XX. him served as The him X, in quite served welcoming storms Mosaic, senior on quarter of As Vale adviser know on challenging well. quarter until and July a that for a We a successor. remain Luciano role CFO

Colonsay electrical our us. Esterhazy All those also now are affected We challenges potash levels. production and mines at faced issues our behind that

the partially actions and to of things continued revenue, in stripping the benefit initiatives by control, adjusted potash are lower aforementioned The ag improving and of markets. income and in us to these billion $X.X are and we resulting of phosphate delayed prices focus generated Mosaic offset quarter, third agriculture fertilizer a $XXX the challenges, $XXX EBITDA strength the adjusted have our ongoing million EBITDA from by said, driven and For That and within recovery net was lower million. margin. in positioning that on execute Brazil,

to run turnaround rate this activities the X.X annualized later are of X.X by our achieve tons targeted ongoing year-end completed to We million production million month. expect phosphate once

to achieve XXXX. million track on progress good savings annual by and end rate cost run our management our making target of are $XXX We cost on the front

Mosaic this X year. track CapEx significant million is on key to the is well is a Biosciences key our product its markets operating reduction around as internal and acres world focus growth, Mosaic growth. Capital fuel our Biosciences and external not allocation which Biosciences in long-term million fact, us. strength products using model to capabilities on by achieve largely highly and positioned are the leverageable $XXX market does in powered leveraging targeted We as to our launches partnerships. accelerating, Due our growth this now used of new biological new for require capital extensive remains for in brand, are the year. being our access is self-funding R&D

are to in mine Esterhazy and compaction we complete This And our project conversion low-cost project at HydroFloat in next we invest strengths. and project plant Brazil. our year, the will year, Esterhazy Riverview. We blend the continuing MicroEssentials the also at at Palmeirante of our the are completed our potash MWSPC which $X.X shares, focused mine. assets price, billion into as venture New such the on for of portfolio, capital today's worth review Mexico reallocation joint conversion strategic in other Carlsbad to billion the at Ma'aden's share our $X.X and We're

the first returned to $XXX the shareholders of year, During million repurchases. of million including we months share $XXX X

from market improved sugar outlook. palm prices for commodity that are other Now an to news soybean allowing for enjoying soybeans. a complete August prices moments and solid let's Barter fertilizer work, quite of the demand corn have North early near-term oil, good farmers is strong. which the In commodity and while more offset yields strained few opportunity the are outlook. impact harvest Corn state field ratios to discuss coffee fall healthy spend their are the Brazil, lows, In including America, and and crops, of and

Barter for is improving, the an constructive safrinha coming in months. corn setup the crop the fact, ratio increasingly In

which support We Brazilian used corn has have also seen production, a provided continued uptick further corn price for there. ethanol in

in ag remain compared Large and the fundamentals. a new beyond the the ethanol crops be that America solid long-term and starting term year forward of in The India in and catching soil and diesel recent with years nutrients grain India, corn. biofuel last year. current in many a for North the mixture reiterated high for year latest are running the regions levels, policy in particularly lead would to are X% demand demand ethanol moving calls of program constructive X% becoming this in increase driver and an longer of additional highly biodiesel a Indonesia government the Over In with attractive January. net yields picture approval application. oilseed supporting the affordable could fuel airplanes. pronounced In biofuels is biodiesel it changes under gasoline the a the of an removal, of gradual remain importer mandate content from fuel in BXX drawing world Brazil, soybean after this growers aviation sustainable up and with Fertilizer for to as nutrients around to far

in to demand replenished. The to we've So key solid XXXX nutrients remain offers low prices markets market We we hit as balanced. bottom and potash seen will remains as relatively higher. trend expect prices potash begun in resistance are have think have

shipments expect recovery, XXXX where to oil by Asia, and record-breaking in broad-based in particularly near driven are continue XXXX palm record Southeast solid. shipments economics demand global for We

production we has margins by exports X exports demand global remain stripping fuel market, expect to strong, expected and and total the tons solid peak. for industrial down constraints around tons persisting to in elevated. supply is and continued uses. are tons availability for recent This driven of reduced fertilizer will restrict phosphate resulting XXXX, likely million and from be increasingly the to phosphate well future. production million million by year for into about Chinese phosphoric at China For trend remain Prices industrial fertilizers. last uses, X.X XX continue acid their Domestic consumed phosphate

going leaving nutrient an phosphate and demand farmers short demand unfavorable an environment, improvement up for is in In XXXX, because setting unmet, critical of subsidy addition, economics. of importer assuming strong Indian government a

results. resolved. by segment Now, production further approximately Esterhazy lost million Canadian of million issues I'll move to adjusted issues compared and a broad driven the strike. now and generated These prices electrical ago, EBITDA Colonsay segment impacted for tons by $XXX on lower at fully The are due were the XXX,XXX and $XXX Potash of to rail the with quarter year our

impact plans to limited contingency of the as in much range issues this product $XXX from the outlook flows X.X the to mitigate the includes we that For Note volumes million has labor ton. quarter, at of sales Vancouver range to per from the Canpotex fourth Montreal. tons and prices expect via ports. impacts and in strike by possible $XXX of million potash the diverting other ports X.X as

longer the for the the significance the strike the of to However, higher the given volume network. Canpotex terminal potential impacts the goes on,

pre-hurricane ago. due production $XXX Improved of $XXX million for to generated combination quarter and of a solid segment a EBITDA stripping Phosphates million strong compared are results year margin. Our adjusted levels with the

by third million port quarter, volume tons at events production and came in delays sales driven lower the by caused and closures. weather volumes Our related X.X in shipping

Our margins what strong, and ammonia realized We advantageous from we X/X partners. of consume, remained part in our of supply ammonia we of because about a produce sulfur have economics. reliable stripping and our

offtake ammonia beyond. have needs in and completion We X supply agreements XXXX with executed new additional nearing to X our an meet

market approach sourcing reduces in exposure risk raw advantage. balanced conditions sustains Our our varying our material strategic and

second cost Our the largely ton phosphate per was cash from conversion unchanged quarter.

the conversion XXX,XXX our to As volumes. reduction costs target a $XX the about of up to reflected run $XX watermark fourth tons, quarter be to will the Hurricane loss at continue ramp we in resulted end which of ton Milton a XXXX. expect to rate, production we achieve high from in per production in

in in The expect $XX Brazilian sales range million lower a the bankruptcy $XXX $XX we compared year legal and result in million prices generated of to ton. Mosaic debt reserves $XX of customers For we SG&A volumes filing. due bad of and fourth X.X EBITDA range bad X.X the to quarter, million per ago. $XXX phosphate adjusted EBITDA reserves. with of million to a $XXX debt booked reserve in was was the Fertilizantes in tons million million the

be the We back recover an will majority expect all, quarter in amount recorded are received. All claim, in to we through insurance is track. it which of the on this

we all full ahead and operations are we XXXX. to capacity Our geographies to as restored look optimistic are in

We believe around generate robust and expect to the we will world customers performance. that demand constructive and our we allow levels fundamentals us agriculture from meet financial and market at good fertilizer that will produce

deliver will portfolio Biosciences in meaningful our pursuing opportunities shareholder refining of strategy Mosaic Our value. exciting while

Thanks, Bruce.

live most we Before the throughout on we would that Q&A, common past address have like we some of quarters, investor done have to as quarter. the move to in we questions received the

next what First, current agriculture for And markets? is what state outlook your year? of the is fertilizer and

fundamentals fertilizer and year next to the affordable, which for will Thanks, Ag are solid demand. supply market tight fertilizers potash bodes well phosphate Significant balanced. into market changes keep Jason. and are the is

to let me Jenny her view. provide ask with Now you

for many strong remain Thank fundamentals Bruce. crops. you, Overall ag

X/X fertilizer corn to only continue potash significant and consumption be Prices for very oil, palm soybean. coffee, to remind which other We growth goes supports investors demand especially that of to phosphate of attractive, continues sugar, year. commodities, this in and ag

For future prices. soybean international corn traded i.e., domestic fundamentals the Brazil, prices soybean also This devaluation is of the are improving. bioethanol. In are real at new and of actually corn to growth over demand, and premium and due

last the Friday, last to back corn sales the summer fertilizer corn safrinha of the As of and as of same come have crop. year, purchases, the both so pace and soybean

and government fuel increases corn bioethanol I'd Speaking the for term and X%. increasing biofuel new approved bill is rate suggests increases the near recent blending influence implies of term, to in diesel significant that rate and bioethanol. in about blending and dynamic corn by will both long The soybeans and to about another like to for demand biofuel, demand soybean. Brazil, which of highlight market increase In

million investment cane a and for to has by use of this target the XXXX. XXXX. In as a would in going push of demand to is X import And before goal Our government government EXX plans this ethanol the production imply country and realized corn tons India, NPK hit to get if to the their has Indian rates even be net shifted corn estimation that in the country to are fertilizer EXX to sugar rice. ethanol corn to addition year they

North XXXX to at to unfavorable grower demand demand supply, reduced in which is for the and outpaced government's with is subsidy we move growth market. Overall economics of potash X% early into me America, constraints, generally holding year soil get over we cautious let the demand our In beyond. Brazil, prices, hearing must nutrients tight. at growers X% shipments Now the back stay phosphate XXXX. In customers from harvest sentiment. this were have phosphate. setting this nutrient and program. are this due The In as by year soybean These economics This to and are compared phosphate par expected in Phosphate surprised that supply to headwind been replenished monsoon the be from the markets are expecting up and XXXX, economics demand while and removal big a to the improving. be to see to yield tight corn the inventories to large a ratio driven grower XXXX they and constructive and we increase, yield pent-up very year. XXXX. the the could import related Barter been growers crop with as have are improved up We've are appetite

to demand expand fertilizer Brazil expect We to XXXX. continue in

by QX, very fertilizers industrial by limited seeing XX% use, is end ag are Lastly, batteries China limited on use new PTO demand, side, the supply in X.X availability tons. both have production in, coming competition of LIP XXXX. tightened dynamic in vehicles use. of are domestic Up electrical million to strong of and supply exports increased for the stationary their and of to The the and between industrial X. we

the up been tight to fact, import rock order continue to next dynamic meet is stepping year and expected phosphate The to very demand. In has support China market. phosphate in

attain For XX%, very and The Asia elevated Southeast supported for Year-to-date potash, was have level Indonesia recovery we demand Asian base recovery in input and demand of in Malaysia, around broad price the by up potash. other south-east globe, similar we've oil market. the palm in prices region. of countries rice growth constructive really especially seen

shipment rebounded to we the as will potash We record of the XXXX. in expect this global to year, be year saw

to to largely level level. On or the historical supply prevailing with we see in balanced the have returned Belarussia now growth demand market pre-wall side, supply further from price low as Russia and potash the spur XXXX. Globally,

on levels. phosphate is production question Next

about rate your you in volumes production achieve forward? Assuming target think fourth moving how quarter, the run should we

achieve to the rate by the We of do quarter. expect end the target run

us will Our the schedule of up for turnaround weeks, be in couple set will next the complete hitting which target.

sustainable note it Our turnaround But quarter-by-quarter please on basis phosphate and will on we continue to production the a will achieve that be vary level depending target. once scope schedule.

for year. This some have lower which quarter American North well to turnaround mix. quarter, full quarter the make result for spring than affects the scheduled in year, balance first For other the run the production rate example, production for One we activities to up set which will demand. up that factor first us to next during we the of expect volumes, will quarter, produce at product rates is

of continually Our requires maximize mix teams are different Each profitability. amount and monitoring to our to optimize products product working the PXOX. a of markets

target product mix finished land product the dictate quarter. where So production rates the the within decisions in we range each will

to related Brazil. in is current question next Our the situation

credit the You recorded losses? bad to future quarter. exposure $XX million in of is debt What your

We credit limited have to risk losses. further

issues. the While credit same the participants market challenging, all industry remain facing not are conditions

of portion co-ops good financial customers, condition. traders in are significant and our grain fact, In which are

we credit effort concerted credit onset impacted retailers our the made of by reduce exposure most During a that the to to are problems. crisis, the

losses. year, and As seasons measures risk approach risk we by losses safer customers our our prevent to mitigation sales integrity credit them. losses. In mitigate requiring and to we [indiscernible] the move into that used exposure prepayments continue we are from will insurance prudent to employed to have safrinha contract programs We ensure reduce to credit believe incurred, event our the next continue additional future

session. the With Operator, move follow-up Thanks, to questions. that, we'll open open on lines question-and-answer now Bruce. the for please

our from Fargo. Instructions] Garchitorena Wells And [Operator comes today Richard first question from

retirement. your Congratulations, Yes. Clint, on

put also the the first I cost given looked So was savings of wanted impact up the I would from like, quarter? shutdowns? strong have cost $XXX I to guess, million, the what shutdown have if costs events. challenging the wondering, on despite looks was weather track like margins you're you phosphate your didn't there on And you a temporary the business, on touch just during

much Richard, strength little out hurricanes Florida quarter a reduction had of ability point, production really in the historic. we on Louisiana in on of and Helene the for production though ports. from third improvement to and mostly kind about quarter end at does and cost proud fixed have, of of question. over bit cost your tons of did to We've flat pretty of the versus this our margins. absorption. various is Even was show It We're your our shipping the Thanks which program the of how has Bruce. XXX,XXX, point, XXX,XXX the X, kind impacts improved

know But seeing with talk underlying turnarounds. We'll I demonstrate at that we're of things our fourth mark improvements and that. the the high said through. interruptions really down. rate. the definitely, in XXXX, weren't as up believe was turnaround And sure, quarter storms, full $XX work absorption you coming taking run believe that performance get these in I from we cost past to get we're going due when So have $XX we of that, it's that expect there. which But I'm when obviously is to hard we We we'd that quarter more other we've hurricanes because we X, we about always could our had. and there kind

that over should more think that's should have notch and as expected on since go Clint, you. in just expanded it turn congratulated down margin costs our to another And forward. And I'll So little what run forward. demonstrate we have as we forward to rate would we bit look he a you investors I do

and talk add can if that. you anything about that to to wanted You

congratulations. I No, And Bruce. Richard, it, appreciate appreciate Yes. do I your

to spoke well. really you I think, Bruce, it I think

lower you that those production improvement is with ton on adjust right for again would I think adjust kind cost path you think a levels and per shutdowns, for close, [indiscernible] have you see the lines improving. of production would at that on the I you and that. I the as And in seen look on the again, if would see just you think

our And from of next Bank from Byrne comes America. Steve question

you'd This about drill having Are statement? or there flow pipeline biologicals? Is biostimulants what's call your How the potential? these little this on income are out like fertilizer group? in this here? in a comments as made what blended look the importantly, bit Biosciences. product more through X in these Is it are you or seed longer-term a with I'd in products to treatment? there does acres, And like the functional some million meaningful anything

Steve, and question, get Thanks, Yes. one. hoping a we the you maybe be would

Mosaic. I that of seeing acreage Biosciences in covered a appreciate really do your it really exciting course So proud about the because on Jenny these be I'm going in something specifics of. the we engine But acceleration question time, for products. is feel that of the talk let on question. to growth could we're We're this

So of pipeline. said, of let we're kind to as me into the to over about excited I the But Jenny and turn products then the get it. it specifics

for market, that nutri efficiency a product Thanks, enhancement The are are Steve, Bruce. in basically the we products. selling question. Thanks the

biostimulants. that in X major nutrient selling do, we're improve products These products they are We today, products products there they America So BioPass. code do the China, have and in called third-party use we third-party in were and efficiency. of -- are customers selling North Brazil, Par as America Central basically

of product, XX% of selling which or the products our the than basically And So XX or coated And the the today? strength are steady. the fungicide rest have products used mixed are that very insecticide. with strength, our being made liquid More is how fertilizer on formulation are we're granules. fertilizer products

mixed forward, products let our protection fees. going be we on have So core products quoted ammonia and along be other will can UAN to with with products. And

nitrogen stage on So Steve, are ones, are I for the made we for solubility the the stage is over asked pipeline. our The the and of And In can quite have most products. at investments looking that's also as a last and the materials. the mention, pipeline, years of is you the questions wide and is final range in we the we exciting field pipeline, that one phosphorus well. And which we the that registration. in of development products this a few improve and trial range the one fixation

North have pipeline Brazil, the will well the with major market, our report stay and that tuned, and the on making product market So America, as growth India. in new agriculture we accelerated China access we're more as market,

Parkinson comes off. Research. next dropped And question that Jackson from our And from to We'll Joel Wolfe Capital. BMO gentlemen move from Chris on

for Can showing potash growth, or we talk think next You're million demand X.X about tons a for a bit million growth about I demand of year. X outlook 'XX? your

next supply? also what and about incremental demand supply then talk your in X to year. Plaine, that cetera? see really for you tons, much or Canpotex case, will million able KX, do What And supply how many the you X Just can most be more year? is Mosaic next for base of think, et Mosaic How I above can X through Belle You Colonsay, years. tons haven't gone

a million as you happen be growing squeaked fashion, depending and that of picked in out demand that that what get next to do probably Canada on, Russia from Yes, out of on in anywhere in can then tons maybe the said, X probably to capacity, there's remainder potentially see out on more But our we I'm materializes. going to well. Joel, sharing additional going could Jenny of how to part [indiscernible] just year. it being little the as X.X over and you range Belarus somewhere up of bit of supplied, form And details supply turn in a and or be demand. materials, obviously, million that it's some market into

base our assumptions. you probably Thanks, more little want bit on give Bruce. Joel, case to a specifics

the support example, the and we the will growth have to affordability for the price current recovery, some markets, Indonesia demand further demand the in believe level, Malaysia. as in On side, demand and

and case the some Russia. which to the assumptions on base of product EuroChem's of assuming out is our VolgaKaliy make production, of the push supply further side, And going are project Uralkali's ramp-up final of

their year. by it roughly more estimating this BPC Bruce and reached this expansion the market have assumptions assume million route. And alternative serve plateau to route alternative lastly, on market product the expensive X.X big to we as And we to Laos. already very to the mentioned, through tons in the probably the is get than using are We knowing

partially Asia So well-known including as in well. and water potash, capacity slow change And YTH for also the the potash the next issues. the expansion due the expansion XXXX Asia and therefore pace We of of inflow the back our management including based to year the capacity, very their assumption expansion to also was they capacity. will be for

as this supply forecast in from are Laos. So as you the we we and uncertainty. some is And XXXX, see, know, growth also can the significant with as increases major Russia also two expansion from all drivers

So we is online that the be is tightened. market suggested, in what coming case, a as is not the the going to supply there potential

the some investment. at or is like just to investment Joel, about in And at it things expensive baked which We'll for more something that comments, turnarounds we'll need once range. that the up that And back produce? comes Esterhazy At be high million we on, sparingly question other beyond if market which modestly be of we've opening Colonsay, in to we is project, cover the other prepared around another ramp XXX,XXX and share your talked supply able tons that a our the our the announced could Esterhazy, a X in Canpotex's and based we things to we've unforeseen use to at part Colonsay and Hydrofloat if low but there of on slow what time, in sure, generate that Belle in for we'll Plaine return, Esterhazy And year. in North participation should for next happens produce comes major then in point midyear be globe. idle online when timing ton continue hopefully combined be what in happens above America, to the time. to and

comes Chris from Research. question next Wolfe Parkinson from Our

right. nice a ask All to promised I question.

is some and go phosphate back the want terms to just the Same that of ultimately about consider on of step going the last question through earnings? inclusive of the of several rock for how factoring concept when processing I just run what's for obviously in be everything quarter, asset and downtime, of -- of back terms getting So of thinking costs. phosphate some your run the Street rate commentary years, should a third we the just in procurement the then average take rate to base normalized in kind

So when normalized hopefully compartmentalize, into assets presumably should back much be in earning we 'XX, sit broad kind we of your what how and you 'XX, framework in just should are environment a be ultimately using?

Yes, I Chris, appreciate the question.

there's As I a yes, talked and of like are is multiple we answer evidence times, the more way that that is recovering I'll we've we have think, on run rate.

run of finish kind we after and X.X turnarounds. said we've context, end largely the won't we As in of X.X until been that consistent rate just it to put to achieve year

the December will open. this turnarounds couple in year And finish then weeks. will be so next wide Our of

of turnaround scheduled major of Bartow in do we quarter a Unfortunately, turnaround. sulfuric next have year, first pretty the

at by X.X come that watermark in to as down, should lumpiness So earlier that that beyond look said be I some X.X. costs Conversion from but there'll of out 'XX that, should high to kind $XX quarter $XX this kind to on ton, flat in about basis. to that be per been annualized XX that and Rock had cost Florida. we where sustained an of we're type

there. -- on when hurricanes think that absorption rock minor fixed some upside some on lined cost. impact to was there cost to But out due I so upside we get the there's because better

it's cost going any time at is that be higher being And on matter Mayo given in the blend a is a little consumed then the just much side. to mix rock blended rock, how Miski as on

that together the for, -- So conversion way that's you looking hope all it. you $XX, cost I sub $XX probably, think, seeing around I you're the XX-ish cost, and numbers that rock and understand put on that that

Our from Ben next comes Barclays. question Theurer from

right behavior Just of because in love you in now signals and to I farmer don't you're going the Brazilian transactions to wanted particular? now elaborate in mind. into into dig a many activity on bit you out for Fertilizantes, buying the how deeper like terms what business Could Brazil seeing so like Brazil, business just little if different in would getting of see Brazil, you right what through we're are is just

I'm about thanks. to as and one side right that. what's that of to ahead Ben, good has and Jenny go commercial Brazil going talk head of Yes, a going she's and on in just turn pulse that over

Jenny? So

facing partially year demand, because on it of the especially because and traded Chicago especially local the devaluation actually of at Partially the at U.S. the would Real the market. the challenges prices throughout I'm economics. constraints also Thanks, it's Real, the is are or the The demand, it out say Sure. new a we is the see I demand, in of we're year, of the the message states. not higher the largely prices that partially level. Bruce. been because mixed things are hear commodity is local on higher and started level. What of with of to to most recently than newly added bioethanol partially headwind changed, new climb that the has start demand a, the price Brazil. growing are up surprised mid of due to some saying Ben, local the to you prices the has their plants that and on the farmers commodity in prices. and Brazil that saying selling improved to farmer the Ag from at credit We liquidity corn really say middle dollar And

for their much on, tracking next we the very purchases how have how sold next made closely crops? they So for greens b, have a, much season. And, their are farmers

X% which last the sold last XX% the crops, farmer higher to historical the time of than their Friday, So average. for same of coming close safrinha and corn, of year is as has

farmers of progress they part a corns fertilizers. and the are As as the selling buying are

the to last season, over for of situation similar have usually at their early, It XX% time ahead is So already. coming summer, but time, safrinha corn know, is started soybean soybean point of next their for the crops same farmers the this fertilizers, sell year. season. which a they It's of I purchased of

have are they higher of and sold time going higher the year next to of plant X% farmers the as season, which XX% It's of we than to step next at for Friday, As They this X the purchases which of the saw the a X% of big years. same summer year soybean, last is last their their and before. have similarly up. is par than week, the the purchased summer last fertilizers. Last X% fertilizer

what challenging improving improving is, grower it and as want economics is as activities. to level, So sentiment, we seeing I the that are improving conclude at

comes question Andrews from Stanley. next Morgan Our Vincent from

Vincent. quick Justin This Pellegrino I on had is for a just question.

XXXX? for phosphate India government environment. shifting into the seeing missed unmet mentioned how ground? some see the of demand was then on around because product you just out And much that subsidy you're could You subsidies unfavorable on maybe give how Can commentary the in shifting you those XXXX

that's growers Justin, that, over saw see subsidy versus significant give to on put would what the a shift definitely thanks. actually missed the the MRP they something to itself, whether incentivize the order details. it that turn necessary Jenny to need in it's crops. on demand in And Definitely or a India. amount to trend be to I'm in demand going But the

with that, and let So turn me statistics. of to Jenny detailed kind over the it into get

Sure, Bruce.

to importer India for So But DAP good as farmer reason, strong, in prices. been by and demand supported importers, was The price, $XXX by two low ton. the to at per and has are is subsidy supported the year economics year, really by CFR farmer well on very you b, which government, This price between defined the differences are MLP on not price and b, commodity the very this itself, actually DAP international the the strong. price. Supply very farmer economics able good the things, are is, that demand catch so up. a, the very same from monsoon, One right? mentioned

If you level. at is price international market think about XXX-ish

is So the to a catch up not big the government able there on has such gap, been subsidies.

estimate partially were that need inventory. So million million import dynamic Farmers X depleted The has year around this reluctant the this from therefore, the shortage still this fully tons. be DAP shipments farmers. We caused might coming from shipments consumption this and the partially to reduction from tons. importers X reduced to market, to are due international the and

going be year, how get to changed, likely things is likely we a, to we be just going adjusted, as into farmer So is next price the low that assume, and too XXX probably that be subsidy We economics assume still need to the to as adjusted. good government's support to farmers is level will price will well. adjusted be Partially, the have adjusted it. going be to

they on country publicity So were farmers lot ground. however, we will a need be the down short phosphate. already. this that There the the out, year Indian were shortage to know of the played for dynamics of to And we are going DAP in know put

foundation XXXX. laid into their get that subsidy into as good the the consideration a government for So

Our next RBC Andrew Wong Markets. question comes Capital from from

a again. on Just few phosphates questions

kind monthly that just just total quarterly going phosphate your for you be big clarify run on level when of there's Is a on you that's X obviously a as considered on when of and year So affordability next million-ton assume And are had impact then annual if And or assumptions demand, so, can that? realistic just account highlighted. this the all turnarounds? a for what no on annualizing phosphate would phosphate you pricing what production based demand year forward production rate? because

growth? to that little to how phosphate Just bit need you wondering about of prices a of support So that? kind kind think down demand come

turnarounds all that as what year, of the to normal historically -- run more due X.X to million couple it last disruptions. X.X interruption to ton we've is abnormally rate range, And turnaround issues What scope. the getting phosphates, on course, well scope that yes, consider Andrew, over this of and annualized would to hurricane. and normal weather of abnormally weather-related and years normal seen historically at normal large then, historically due has million as we back turnaround time

based up, So, many year or expect X that given that annualized of question. an X.X month-to-month, the whole repeats in point X.X some weather said, a that to or is whether forward, on if That's given may in the and half between the make range. be back itself If how the see a different million, hurricanes? type pick of probably on on downside But we history, want this now on single do that you have pattern going history we'd we on in something of year, in obviously. as The month, the the depending turnarounds quarter basis. fell. when are we quarter-to-quarter, any depending turnaround would But first on any half lumpiness that

number an realized and the So that more. is X handicap to million not average -- need

but account of to As very on look overall, with far input at gate. what's yields at land think costs growth, go that what I into rent, turn going And what's you high acres. prices been better and little to seen well farm on well. potash now. going have as as on with as this all right sure, have year pretty large phosphate the other the will costs to on out got be a as affordability is input given affordable on demand farmer for price we've Obviously, But economics

Jenny to have We Barter an Brazil, seen rise. example, as in talked ratios, as about, starting

for believe everything of still there So the taken particularly is the in on being North function we a off America, quite amount but farmer are this crop, the be affordability of together, always in large. the will you going add obviously, when and overall nutrients of what's constructiveness geography,

is need of high impact. to yield about think going that and that replenish the suffering type earlier, be Jenny I talked some to without

turn see want Jenny And you if I'll over it to add and to any more.

Yes. Thanks, Bruce.

and say might likely be demand because say growth, probably going price to really say improved. grow would the would demand I Andrew, demand year, can the grow. if I supply only not think, next I turn comes the to down that

the forecast ourselves increases, production. current on there's XXXX, on no like supply assumption of major the Our side the but more on improvement for

probably demand define not grow. the demand. factor to the like be going So Bruce if The to the price next be can of to supply necessarily improved the size year, get the will mentioned, it's

next from Rodriguez Edlain comes Our from Mizuho. question

Just question. a the follow-up phosphate to

Bruce, outlier So the charts DAP? nutrient all it an being great, exposed there mind? best Like such Or when to right other your and the hardest show at such data nutrients. some in the affordability what in look is and apprehension to an I'm now being that Is faucet you to compared goes outlier?

the as unique well, of It be view, on phosphate the nutrient appreciate I question. Edlain, of going obviously least or we way that's be the high its things the new in now, That at we for or be your announce on have if said, anything is is confident the be at or on trying to manipulate the near way about looking our in concerned things do time, I it own. phosphate. If of that significance capacity, modern, believe be just new limited more our or look isn't what's have the know is driving it is term. the you or whether fair were just to the somebody when limited other. prices. is price would to simply happened that What the to significant been long, but OCP -- is look hasn't for forecast the this right? not that supply, constructiveness that would that trended would we I on It announced. it price, Yes, a in talked would own change supply one nature historically, based to it intersecting question. because for supply. on fact announcement appears more Jenny new is Right to anyone an prices market the anything As capacity, demand, is back That in its aggregate,

the Mosaic to XXXX, obvious is to concerns I we for realized have into may is don't think that stay going good. going margins for I we to anything there And quite great So something catalyst missed? that that have on an side until be still that side. Jenny, feel change something are supply pricing on the change stripping going see fundamentally,

phosphate supported by I the also Yes, only are guess prices. raw prices today of add, the one I high Bruce, material thing, would high

of ammonia a price they stay level well. as sulfur, the and at look you at If very elevated

example, on earlier. although changes S&D price margin the ammonia, next stripping depend of as year for the for phosphate, that anything are S&D, might on the if side or of the phosphate really sulfur Bruce adjusted mentioned So

add that point. I So to want one just

question? Operator, there is another

sir. Yes,

Joshua comes UBS. from Spector Our from next question

wanted just I for Josh. back on This to get Beaumont to Lucas is Fertilizantes.

of your on Slide there shipment have outlook updated always you So XX. kind

year interruptions factors different in a that range-bound of You're that's lot be like kind over shipments. going I we've kind a had putting of in row period. of of XXXX, with know to relatively fifth the

just there of year in back decade. sort guess get growth X% the going used prior kind I to in So further, we a of

sort So growth of -- higher just there your phase to reached forward. higher going see kind a thoughts of market Or kind expect growth return that curious rates have a now? there? get the stable we be for how you lower you to Do outlook now on of more

Lucas. Thanks,

demand static to of it understood think the in into what still was it let details bit turn little the on on next talk I to about a question fertilizer If over year. we kind but there growth. your optimistic nature because we're very me see I overall Brazil Jenny of going more

Bruce. Sure,

are improving, next Brazil Barter we year, continue improving. for is mentioned market the the and we to think ratios to as going expect farm economics And I expand. do grow earlier, are

for overall we're seeing expansion. that sign next on forecast year So market our the support today

very For ourselves, been you would mentioned, I you I we've you if say our volume. sales mentioned consistent. correctly, own heard

who are Brazil, our on very of and business, of this we pursuing especially the we especially kind than what with the for for margin in risk distribution that operate year selective value we credit volume, always credit taking. environment, we surgical are we in As risk sell and like a to and market are

result growth, value our probably volume volume. much as we as over As market growing the it, pursuing but not of again, a -- we are

And add that which blended capability, X for right of again, was -- have well, will distribution X distribution Jenny now kind do which Pomerance investment tons mark Lucas, fertilizers. as at then, our of capability it. about I now, we're of We million that million another talking

north in So today, Pomerance the of owned footprint we Brazil where come online have of will million X next that year. another will don't add and middle

markets Again, is for we'll have makes be be be where that, flexibility key the grow. with agricultural point based other world. to point, we as going and Jenny's continue able the still another and the sense credit to that's which in, in but will to that Brazil, as long grow believe what's like that one to it risk-adjusted on we'll things us, to of economic in sense So on

from our Jeff And JPMorgan. question from comes next Zekauskas

EuroChem Two-part might at or you Lukashenko its Belarus second, question. any curtailing any seen rates, phosphate of way? markets it look signs And shipments. suggested that or overall Russia XX risen in either export of you if at in potash to exports, fallen or are Uralkali total local million curtail Have year in Belarus shipped relative has very, production that high inclusive China, that and China, very what to trying President volume tons. the the when to

Jeff, No, Yes. thanks.

But rates. seen between any think saw we President no question. Belarus got that there's the well. or to knowledge, I done from of Lukashenko gist the evidence Yes, I But to and as Jenny my article knowledge I, independently have to we evidence. we our not either can -- collaboratively anything have -- or reduce that Russia

that In I quarter. anyways has the to over at pretty Jenny, Belarus we been out access have fact, the consistent, last of data the has think it least shipments in

Yes. Yes.

Yes.

something in were that's then the overall And that both they one do So our then no beauty react space, other, in or if Jeff. have, whatever with been ourselves evidence, we'll do. on as based what And the adjustments and a chain has Canpotex and Belarus. is, Colonsay of set on supply going but what with that this resilient we'll the they're to change we look forward by I our the make participant S&D flex. to market way obviously, strategy, appropriately mean, our as to

thing, over that boots on have to think a I'm Jenny to team because the just about talk the ground directly the and she turn it going On to information. China lot of I

Jenny? So

the they're -- going of China, on PXXX year, products level, before. phosphate-related on more the Jeff, year phosphate year we question Sure. These or the production to your out this at forecasting last are than produce to to routes glyphosate. earlier, like of coming from be yellow including which used of of increases herbicide production, mentioned now LFP, is we PX, but and as which produce increases a to increases phosphorus, also the other

use compete PXXX that same from more shifting Now process, coming the in glyphosate -- is PXXX to are which the more the molecule. are space production and wet we're

material So driving seeing of production, production production also SSP and level, of increases it one glyphosate as higher increase the export increases that TSP, is for of well. are consumption. Well, On local raw drivers the the is with LFP, don't see of mostly MAP, from an by we PXXX. driven increased PPA but you really DAP, of this

is consumption, of step-up in So the it are overall it China. driven NPK back, I Partially, of by we phosphate I seeing overall believe take the and consumption crops. well, potash economics significant

the GMO of keeping require that eye on soybean, This first thing is and fertilizer will the very management GMO more the to GMO. close a other is The yield. intensified grow which started we adoption year maximize are corn to they

the we to So continue report just that's forward. will going driver other

with operator, I questions, think, So we're I going that, will go ahead and taking and call. stop the to conclude

everyone. reducing call, We've is to you, Mosaic areas other We're investing benefit acknowledging and improving business expenditures. So thank hurricanes capital to And while in today, our returns. key excellent our X and I conditions. costs We're need And improve to in conclude from want to we strengths points. where challenges. emphasize our overcome position

positive. for this hard We're the business is our outlook of Biosciences safely our the the and for Mosaic us running to remainder meet help and and future are for XXXX growing mines demand Our energized and is products. strong and plants year fast, our

So a safe joining and for thank have you and our great everyone call, day.

We do conclude And thank for call ladies joining. you today's and with and that, gentlemen, conference we'll presentation.

You now your may lines. disconnect