Key Points – Sulfur shortages are forcing Mosaic to curtail phosphate production in the U.S. and Brazil, with Louisiana fully idled and some Florida facilities operating at reduced rates.
Management warned that persistent supply constraints could sharply reduce global phosphate output and fertilizer application, potentially pressuring crop yields. – Mosaic expects third-quarter phosphate volumes to decline to 1.1–1.4 million tons, while sulfur costs rise to approximately $700–$710 per ton
Despite lower sequential stripping margins and higher idle costs, DAP pricing of $820–$840 per ton should keep margins above historical averages. – The company is strengthening liquidity and cash flow by cutting SG&A, reducing 2026 capital spending guidance to $1.2 billion, and targeting a $300–$500 million working-capital release. Mosaic also secured a $1 billion term loan to refinance commercial-paper maturities without drawing its $2.5 billion revolving credit facility. – 3 Agriculture Stocks to Buy as Food Inflation Stays Elevated in 2026 Mosaic (NYSE:MOS) said it is managing production, costs and liquidity through what Chief Executive Officer Bruce Bodine described as a difficult phosphate market shaped by unusually high sulfur prices and constrained supply. The company has curtailed phosphate production in the United States and Brazil, limiting purchases of high-cost raw materials while maintaining the condition of its assets for an eventual return to higher operating rates.
Bodine said Mosaic secured a significant portion of its third-quarter U.S. sulfur needs at prices below the spot market, though still at historically elevated levels. – Not Just Oil: 3 Fertilizer Stocks Boosted by Hormuz Closure “Mosaic is working through a difficult market by successfully managing what is under our control and positioning ourselves for an eventual recovery,” Bodine said during the company’s second-quarter 2026 earnings call. Sulfur constraints drive phosphate curtailments Mosaic cited…