LUBBOCK, TX – Farmers could face continued pressure on phosphate fertilizer prices as Mosaic reviews its production plan and begins partial curtailments in the U.S. and Brazil. The company says sulfur prices recently hit record levels, tightening margins for phosphate production.
Mosaic reported a first-quarter net loss of $258 million, while adjusted EBITDA totaled $416 million. Phosphate sales volumes reached 1.9 million tonnes, but the segment posted a $48 million operating loss as raw material costs rose by $280 million.
The pressure is not evenly distributed across the whole company. Potash performed better, with operating earnings of $177 million, as higher prices helped offset higher production costs. Mosaic still expects about 9 million tonnes of potash production in 2026.
Brazil remains another weak spot. Mosaic Fertilizantes posted a $422 million operating loss after charges tied to idling Araxa and Patrocinio, while credit constraints weighed on distribution margins.
The company now expects 2026 capital spending of $1.25 billion and is deferring less-urgent projects. Mosaic says phosphate demand remains supported, but raw material availability will shape output.
Farm-Level Takeaway: Phosphate fertilizer costs may stay firm if sulfur shortages continue to limit production and squeeze margins.