russia potash, page-2

Mosaic Co. (MOS), the largest U.S.-based potash producer, expects record global shipments of the crop nutrient this year as customers become more confident that prices are unlikely to extend declines.

“Customers believe a bottom in potash prices has been reached and are now exhibiting improved confidence in their buying decisions,” Mosaic Chief Executive Officer Jim Prokopanko said today in the Plymouth, Minnesota-based company’s fourth-quarter earnings statement.

Potash prices fell after OAO Uralkali, the world’s largest producer, quit a sales accord in July with its Belarusian competitor and announced plans to boost output. Fertilizer buyers were delaying purchases because of concern that prices would continue to decline, Prokopanko said in September.

Improved potash demand is helping to increase the likelihood of a simultaneous rally in both potash and phosphate crop nutrients this year, Prokopanko said today in a telephone interview. Mosaic is the world’s largest producer of phosphate crop nutrients.

“We don’t want to sound too bullish here, though overall it’s looking much more promising,” he said. “It’s better on phosphates and we think we’re coming out of the darkness on potash.”