#Fertilizer #Producer #Mosaics #Stock #Jumped #Monday
Key takeaways
- Shares of fertilizer giant Mosaic jumped more than 5% on Monday, marking the highest daily performance in the S&P 500.
- The rise followed reports that Belarusian President Alexander Lukashenko proposed cuts in potash production in an attempt to boost prices.
- The move could help Mosaic, which will benefit from higher prices that could result from potential cuts in potash production.
Shares of fertilizer producer The Mosaic Company (MOS) jumped more than 5% on Monday, marking the strongest performance of any stock in the S&P 500 after reports Belarusian President Alexander Lukashenko proposed potash production cuts in an attempt to boost prices.
Lukashenko reportedly met on Monday with Andrei Rybakov, the new CEO of Belaruskali, the largest potash fertilizer company in Eastern Europe, and proposed reaching out to potash producers in Russia to coordinate a 10%-11% reduction in production of potassium-rich chemicals and minerals.
Higher potash prices could benefit Mosaic
The move could lead to higher prices, benefiting Mosaic, as Belarus and Russia together account for about 40% of global potash exports.
Mosaic shares rose 5.4% to close at $28.33 on Monday and, despite Monday’s gains, have lost more than a fifth of their value since the beginning of the year.
Mosaic’s share price has been under pressure in recent months, with the company warning in September that “ongoing operational challenges” — including electrical equipment failures at two mines in Saskatchewan, Canada — would reduce potash production and cargo volumes by 200,000 to 300,000 tonnes in a year. 2019. Third quarter.
Mosaic is scheduled to announce third-quarter results before the markets open on November 12.
#Fertilizer #Producer #Mosaics #Stock #Jumped #Monday
