MOS - Earnings call transcript Q2 2021

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Operator

Good morning, ladies and gentlemen. And welcome to The Mosaic Company's Second Quarter 2021 Earnings Conference Call. At this time all participants have been placed in a listen-only mode. After the company completes their remarks, the lines will be opened to take your questions.

Your host for today's call is Laura Gagnon, Vice President, Investor Relations of The Mosaic Company. Ms. begin. may you Gagnon,

Laura Gagnon

President Freeland, as and welcome Officer; will second O'Rourke, Marketing; be and Officer, fireside Chief Chief And call. Clint President XXXX available questions. of members the Opening Vice Executive Q&A. chat a by comments will and provided Global to also your Wang, be President, Financial followed as to Vice Senior you. Strategic other open quarter our earnings Jenny and well leadership Thank team by answer Joc

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

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

important press measures. X-K attached yesterday's data, release, filing quarter these on as to also exhibits second Our performance contain information non-GAAP Form

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

Joc O'Rourke

over Q&A be half we'll decade. and you session. the before data performance website then some of additional night. post financial and and second provide second slides commentary available in Thank quarter earnings is live to quarter, a strongest as one a our questions review Mosaic a set news XXXX Today, discussion. made our release, performance respond yesterday. morning. for Good second we will excellent to on had as the periods we joining to last I with context in And hope I of received chance you've they've all the up our delivered our conclude well

two by key factors. driven are earnings Our

tight with coupled agricultural prices underlying fertilizer First, strong fertilizer higher. dynamics driving markets, are

to Second, performance the reduce our the of long And market important business these significant costs, results realize demonstrates. fully to and our ongoing our created optimize quarter's we've as benefit leverage. of earning work and Throughout this just are term effort to trends.

expect we upside. ahead, Looking further

is Our quarter and committed book order now priced. XX% third

As the increase per tonne real $XX a $XX to tonne and of in result, phosphate we realized $XX prices. expect sequential prices, product $XXX per in life to

Beyond quarter, third appetite fourth are commitments the we buyer as seeing for quarter well.

point higher that very and beyond demand fueling growing, implies will by this remain of global earnings dynamics in quarter and driven stocks results the demand Chinese soybean the All agricultural biofuels. and third to strong markets fourth The period Grain surging the extend a limited in part corn of and and into XXXX. XXXX. well strength believe is in we

to norms. channel historic the most be fertilizer promising agricultural inventories high solid the result, maximize ground, potash saw regions strong. commodity have of and at below As shipments. in year. every to this year drives In which continues the is expected to is a outlook for has this and yields in set again Brazil last fertilizer big stronger expected continued once prices incentive to is strong expected moderate year. remained the is The means of Across Demand for acre farm income. demand. that we year with and and recovery we remain than compared is The the Demand what growth XXXX farmers and fire substantially fertilizer considerably to Americas North demand demand happened. records a America, opposite beginning up for the in all from nearly delivered world's Americas gone phosphate has

the benefiting is imports global with CBD completion more Following diverse healthy now of a strong, the but government domestic remains prices our farmer subsidies. disconnect benchmarks. India, impacted petition, trade parity phosphate in In importer very because market market economics in demand reflective to This at market from suppliers. pool available of elevated is signals. is country, supply of responding from And the a U.S. of have the the negatively

result, a difficult rectify we done to the needs for Indian they supply. phosphates absorbing As farmer continue is imbalance, desire. fertilizer work to region's clear that be but see get It is to it to the more the

of for source how are, the see Given as inventories depleted demand future. India Indian we pent a up

demand Asian oil Palm and fertilizer yield. farmers China maximize incenting from in is strength Southeast to the is benefiting us

begun supply. In to of agricultural are demand any adequate driven dynamic in and China's demand, demand underlying the decline global supply products. is two addition by similar, announced In supply second supply Greenfield has for continues Reform ensure phosphate year, overlook requesting This as phosphate the different for supply potash meet prioritize and strong Russia demand Development country news reasonably the And by National by the higher completion. domestic growth week elevated rates the the to are the second While market, requested expected limited domestic last Commission while country of stabilize to exports Chinese new export from producers. quarter phosphates fertilizer stopped that for Chinese to demand potash do producers slightly Recently, operating from several from exports the was reinforced new in to is in to increases. be exceed pricing. seasonal years during half supply was

continue As rise. to a result, prices

and our financial This tonnes we brings at price closure the now fact, resumed down approximately XXX,XXX estimate. from impact be our to have Esterhazy. KX million production early offset down KX per In on XXX,XXX draw tonnes, to the our year, also of inventory. X and largely available net production as impact with shops expect recently sales original increases approximately down loss Colonsay We

debt earnings later has long-term allowed free in this early which flow our us Our leading $XXX with cash to the to month. significant million are generation, of retirement proceed

on approximately $X.X This within includes evaluating the opportunities, investors. to with difficulty]. expect from also evaluate business and deployment. million for Mosaic allow we currently well robust cash are accelerated share your are continues we to capital total we to in spending strong to given momentum [technical With in generation to additional bring $XX strengthen KX Overall move ability fertilizer that full our the production balance to and expected us building very grow our up further returning our this our high opportunities questions. as additional here. market. will but We actions sheet, businesses, And continue speed billion to well to to as continue expenditures execute perform KX Capital

Laura Gagnon

Scotia Goldman BNP Exane Isaacson fertilizer Adam Patel from including asking from Sachs, Ben and from Rikin analysts of number a Joc, are about Samuelson affordability.

watching? Specifically, demand regions affordability? seeing to any due globally, are there any areas destruction you're or you Are

Joc O'Rourke

way you, Thank is actually and at we is is grain The this prices the higher grain folks. look the fertilizer. driving demand

for and creating perspective, the that's price grains demand, our driving demand driving and of from course, it's oil which fertilizer is of pricing. is seeds So fertilizer

So balance demand around, we will. see other you and the supply the if way

seems while. may to seeing the while. growers oilseed we have just And most high going season impact see it for fertilizer. so last this prices a point to a the at tight should not Today that They're and Now, of we're some with loosen that with gold been prices. and up, be for one going growing markets comfortable tight are grain prices

have about for they is an Indian of is Now this for Indian India. will And issue mean issue to affordability area subsidy fertilizer. farmer affordability because but inventories concern talked this not that the or the of we've system. local But the importer, sooner the one an later buy

Laura Gagnon

that Steve and Mosaic's handful in price comparing from A analysts America from realized of asked quarter into underlying of It appear to Wang means four? to from Andrew third including UBS the prices have fairly guidance. prices Byrne discuss progression. be stock line appears John and guidance that you in potash RBC, for trends Bank price realization price dynamics the phosphates. has But lagged when quarter spot in Roberts Can and realization what about

Joc O'Rourke

gate seeing product between driven actual prices and by we're international a prices the at the the things. mine today life couple The are

to shipments British Competex international QX, when we're we looked go all, port delays carrier. QX, we as due [ph]. In and impacts the of had through issues. now wildfires seeing due delays First we Columbia to through at rail

shipments to back. starting push the So

October. for that lot sold a Brazilian delivering lot and those volume we're the experienced, prices quarter have delivered Asian you May plus, field early consider prices. the that summer there of shipment further well priced to in American shipped of as of lag KX or for won't means is we're are these we KX main we're course, demand. what closure, to be from the normal August America, due lagging which North times period to turn And were a meet that now and are until delaying that three prices, So North If which a are to the times the the

lag that selling $XXX than spot is would seeing And I be. market. our so plus higher and the normally are emphasize that being we the business, price will talking that the distribution in about we're pricing But

Laura Gagnon

mean are Rikin about or those volumes for contract. And the the increasing do premiums purchases? there and Berenberg questions Joc, ammonia impact increases What provided spot under contract? Steve Patel asking CF Byrne, discounts volume from Tamagno Adrien related any of delivered are the required under

Joc O'Rourke

been spot Historically, between roughly Thank have ammonia you. evenly produced split CF. tonnes our and

our following in supply the means year, the the of price range based the a will of CF which ammonia a total on needs increased natural competitive and like With the half, be to make and second gas this. be have we our XX% today's in that against hedging reinforces number sure up in times advantage our market. buffer that of supplies This program ammonia of below effectiveness for

Laura Gagnon

Isaacsonare into potential risks John another how through What questions. Roberts see? supply them? related the material In for And XXXX we are asking about we future disruptions managing and sulfur Ben do and XXXX. raw

Joc O'Rourke

price at tonne just our much has by sulfur and for see sulfur you refinery this Thank At quarter quarter demand position rates the can you. better at balance really a about the versus per second ago. $XXX the $XXX that sulfur was Today on settled which than the equalized. stage in is

can little rates. quarter operating Now what early too gold have rates forecast but I and to it's is a stabilized normal you refinery to tell gone four,

the quarter rates Gulf a get have coming which the We weather refineries a out of of quarter at the not lot And some remember one and turnarounds we in system we shutdown you refineries, if ran done low have to into lot really in did refineries. the of then our good in operating sulfur was the work one. issue freezing of inventory

So the the are was situation quite exacerbated three bit. a meant combination of type normally

see date risk the is significantly this lower. we So

Laura Gagnon

debt Mark we Are JPMorgan. reduction share from and How Joc, [technical acknowledged including at from we flows. looking dividend insight number it? about for cash repurchases allocate Morningstar, into analysts capital? Connelly will Jeff growth Goldstein how difficulty] of increases? accelerating Seth with specific Zekauskas thinking And small we had and analysts it These a of will Stephens, aside do are and

Joc O'Rourke

you, gentlemen. Thank difficulty]. [Technical

capital through and between that money returning and our return projects always growth will to Our balance allocation we has strategy is balance then working that been debt on shareholders. offer great a our sheet and repayment to

In to terms hand more give on of the think specifics, he let I color Clint, because a little over that. can me you it

Clint Freeland

Thanks, Joc.

one I guess to free flow we the I balance cash builds think sit as we cash generate as let is not it idle. go we're and year, sheet, going note that, to the on further into just thing

authorizations, options. additional a repurchase that we are at dividend. reduction take existing the And for we've got due, look we've got think the some maturities fresh that always can is coming of share debt I whether

of look returning sit number returning is dollars, balance projects But options. that that the the a look our internal us program in. a really generating opportunity And expect further also invest would in what think year but projects, forward, CapEx sheet. We going allocation provide more I it and idle letting into will the like. think I I to to second I as some don't again, have will And think we see to some on program continue like small of that very review - cash half place I on of again, clarity relatively have look high to high we

Laura Gagnon

allocation? are and our health expect initiatives? on can more With in Adrien you ever elaborate soil what Tamagno interested new expansion on Andrew be to the to capital allocated can capacity spending agenda? on new phosphate And the be spending. Wang, the we opportunity gross $XX Clint, detail million

Clint Freeland

Thanks, Laura.

it's think about our opportunity this overall, in I North thirds investments in say I for CapEx at Brazil. we third look about two would when year, one America,

number following. different I of areas. in generally But would I think there's A of in those But the more that would include in next I focus investments that Brazil. being that this number of production say the assets of spoken a part about made are is ongoing, program. are these investments around our automation. making investments that's and some We've of we're gen

the we're to but capacity. sales, accommodate of that and product again, modest expand Another increase capacity potentially be In continues triple to of to phosphate we would to with that. infrastructure increase the looking talked down extent focused some need say to type example increasing capacity very, returns, But there in capacity at these basis. looking return is that about of investments that need some gypsum Brazil, to the that tax some supplier is lines where long significant that. dollar the micro essential in and able make digit we the investments, potash, and million things to his an we investments, to Demand a they're after see typically in digit future. really investments, in expansion relatively all I increase look as single very on on standpoint. we've From for and we're

that Beyond are good this the I health along balance Because those those R&D. investments, new typically again, modest our at concentrate we more relatively look lines capacities fairly treat in otherwise. we are soil rock point When the at that, expensed. are think of initiatives, and really

not R&D would I I into immaterial supplementing additive future. those relatively investments, the products our say, for CapEx. again, so And And new think are overall, to that's

Laura Gagnon

Citi. from assets, of Goldman we've Adam to Joc, of PJ number including related and had Juvekar a our also of Samuelson questions questions potash

really how closure KX question. like One, the And with is Second, was expectations KX? the part production what a look the lastly, what and And volume ARO for this behind your change three impacted XXXX? does changing driver this cost guidance? structure total of costs what are in the associated So does XXXX?

Joc O'Rourke

Laura. you, Thank

production acceleration our was will KX sooner which contribution guidance and two the from of quarter. because shaft the increase in First and production to into of areas volume things the being in able that Our KX basically, of adjusted all, move buying about area, fourth

able we've a And ready Colonsay. has that really it optimize to operations, second the produce fully into of the And come mill day just pleased our which two being the been which is were and the because ability utilized. between accelerate fact to other part are of at the of been rate turnarounds been Matter very early some they then the successful we're we of We KX. commissioned some KX which there so to well. to up the with loss restart tons production. get the of them, also able have Colonsay, mills we've our at we've fully And is of run from two to closure able at that mitigated those very

adjustments, $XXX contractor million then million, and and As far quarter, KX non-cash KX, $X ARO for was was fixed as which second in was severance. costs MRO write downs. write-off, million were closure $XXX offs, there the difficulty] million $XX dollars write of most asset was [technical

of a let's the that. of brings year $XXX million of terms of year million be about final itself, the next $XX Of XX% the will be closure up rest to $XX total say ARO this in spent of shafts. will that $XXX which mine those spent be In closure or ARO, will two so to for and the million, million

summer Plaine that and $XX For at operating structures. in Colonsay one on amount. parts, operating capacity. We also already. X still the be world. our looking the We're to range third are do million cost X to positioned tonne be part our range of ways and capacity the lowest If million $XXX tonne doing tonnes cost is low the mine, in will expected question Belle curve the costs our we previous of the that very set at of now per per costs of at as the very the cost well our reduce guidance. KX

from at work of tonne, with it of to costs first at times and will be can need to then the from make a you XX% meet higher market we'll requirements. $XXX difference that quartile up costs we those very actually So Colonsay assuming kind slightly that out the our XX%

still me a Colonsay that and environment. to are a emphasize tonnes good Let today's we that prices, very very expect margin in these have at would profitable

Laura Gagnon

to this it Thank we'd you, jack. Operator up like at from open point follow up questions for phones. the

Operator

[Operator Sachs. Instructions] Our comes line Samuelson question from first Adam of the Goldman with

Your line is open.

Adam Samuelson

ask thanks. a morning about business advantage Was the little Yes, hoping everyone. to bit. maybe Good fertilizer

to script the moving both your targets. in costs the phosphate prepared from mining rock of XXXX seemed the remarks, to what of and inflation so? the the And conversion in next an out It bend called kind you're away a sense targets just months XX over cost down You've I'm increasing costs and the back from get to plan inflation get XXXX maybe like cost and on there. trying those or a is curve

Joc O'Rourke

you back expectations remember say analyst costs inflation. would Thanks, Adam. on if real. multi-part a inflation Look, to our over there's Brazil, these that presentations, think I higher correct weakening is will by offset time, the be did we of if we Brazilian our in that expectation And things based go that you'll

or And a highlight we this just offsetting method to I inflation. have of for want inflation. was to were not we So, that account accounted expecting

But overall, So those you we drive very numbers on cost have to adjust continue based that. hard. to

our absorption. cost very this reducing big that And of highlight rates doesn't is was transformational think mining. lower the because some drive of your as exacerbated we fixed that and those results And in that, I I that downtime, by increase to them. just caused you'll see call quarter continue a by hard want of that costs for benefits our in to we chunk costs

Operator

of from with line comes Stephens. the Connelly Mark question Next

line Your is open.

Mark Connelly

other among operational hiccups investors longstanding more than a There's perception that producers. Joc. Thanks,

supply control that. look at become more and you sulfur the you've internally materially the reliable? to operating has the question Florida process, your all stuff and potash phosphate curious very of curve? how on can't obviously that would But system like answer changes metrics you I'm You when made And

Joc O'Rourke

very I Well, Mark. its from control, capacity. spent better unpredictability have thanks, turnarounds. lot close any improvements lot in of frankly, a our Yeah, There of to runs maintenance our where And cost high a operational We've outcomes reliability, better and is area of say, yes. come definitely, would system. level time system better the a large of

So, our in our back capacity of see little of look I to in lot have potash and tonnage. if impacted lines the you'll it mean, run ahead don't good sulfur, we hiccup over spring we big look have with time, But the I think in close us, very flexibility, sulfur make where a that running case of you that anymore. potash, at very you improvements Likewise, we had were which you if a area. three continuously, really,

run to do all much costs we the we have those we can plants keep at been I So level. consistently improvements they now lower our do time. big how believe to the for need a most and And those part, think

Operator

line Your the PJ next from Citi. of from Juvekar comes question

is open. Your line

PJ Juvekar

Hi. morning. A Good Yes. question on phosphates.

confidence As remarks? urea will you that Chinese ammonia, said moved went exports exports. what in other What opportunistically your Chinese half, decline phosphate second is we've in up. your as - seen fertilizers maybe as prices which in exports in Chinese China, that raised up, is level And well

Joc O'Rourke

about the farmers has to next is has get things demand here. these need season Jenny, domestic got pretty want internally either to to you demand the or interactions? some as should in be a bit PJ. I'm idea there one to but a talk say, exports. bit demand price Either their the phosphate it internal do slow exports to I think about down. good for and of And particularly perspective, high. growing way, that she's their in little going country. the But Chinese hand their this, government put world on from supply demand is a supply two thanks, of a Jenny, of quarter. me the to And basically and to go the to the Yeah, up do restrictions will on internally going because expectation forces let in our and China, little talk I'll some is But happen, they such,

Jenny Wang

Joc. Sure, PJ, right. you're

have have driven. of We so strong the a it's of strong exports urea, The first a year, well increased very phosphate and as in probably half economics market. pure was seen international driven demand Chinese the the by

of a domestic As result been prices concerns over the the market raising growing the the that domestic as well as supply for market has government well. for as the Chinese availability

Ministry guidance phosphate of result need to China Development supervise the So and the to of Development - do supply Reform to the they to major nitrogen producers need why this And the price. know as production producers it. to also your called NDRC prioritize and domestic where concern, has the you basically in The required the maximize guys meet and National a We They major Committee export. stop to the market you need they the China. in NDRC

their priority. that's So

one the time to next coming imposed if are in confidence measurement attention may government the time, period pay soft is of regulation, the industry, not which at NDRC's going How the hiked these whether enough have tax again. at they So yesterday, this if enterprises. not that improved have closely to exports strong The May. government situation comply the at very And watching kind if are follow was industry, from looking believed are be of are producers and then the And over tax And that exports the and requests the major see NDRC? steel is being the is be been Chinese prices by mainly and The the a to taken to domestic supply that hard is guidance civilized. we the state-owned other requests improved we it. from reason to moment, you NDRC. they're

depending urea, do NDRC on export that next coming over is So that's possibly measurements months. phosphate be up the they to of taken could really two one the export. how the to same will and has Whether that the much steel to

in August this We committed NDRC. and been from come slowdown the by you. export the in will sent has significant will because and was September to QX request probably July Over see earlier before

Joc O'Rourke

Thanks, Jenny.

Operator

question next Roberts UBS. John from from Our is

Your line is open.

John Roberts

Thank potash maybe contrast phosphates? on a Belarus you the earlier that compare the bit sanctions little talk you. sanctions and about and with Could U.S.

Joc O'Rourke

I going were Thanks, They Belarus call main them relatively - guess and the to that I'm didn't to sanctions much Interesting most John. the fight what them of grades didn't the toothless. they very potash. in basis of the include were have

think potash I the only that might affected have about XX% Belarus industrial of the sold.

the So the other food much surprised And to wrist, than the wasn't the it on the a case that really the unfair that. Compare countervailing of was I security slap the unfair And really impact taking to about U.S. not with in producers. CBD subsidies the those mean, and market to Belarusians. which mix, restriction advantage by subsidies. all concerns I'm of harm - particularly was duty

seeing political pressure about to markets, we expect, what of which rights human essentially I run case we're statement to of other I simply put Russia. I say hopefully was the would situations think the mean, major market remarks a I and issues. CBD some And the in something we're what I think But and is is the do on we're opening drivers. parodied said Lukashenko importing at into in of I've and with very, is what companies seeing seeing very different about number think countries U.S. a my new now CBD, the it So their this

Operator

question Bank Byrne America. from Steve of is Our from next

open. is line Your

Luke Washer

of to That's thoughts can should looking do tell at you you good Luke or And Washer for I actually they history? Where contract? Chinese today potash inventories relative morning. renegotiate your about your China on ask a potash. import wanted to on what to Chinese when start from think Steve. Hi, do

Joc O'Rourke

Yeah, Reserve into get they're that as Jenny. I'm can you're at And and going to place right starting to country Again, I are continue well think Luke. National NPK hand this to and But producers over of potash have their to at the the where internal tell going thank if port starting you, dip depleted. the to little fairly probably to inventories supply they'll now you I market. a be a our to

And of next have for from that producers, in later. round than the rather their not So pretty don't tonnes. But of is are purchases needing position to think China I producers any tight getting that expect because on port I sooner start I to think China. looking, comments the will perspective, Jenny, ship they those inventories? a this negotiating will

Jenny Wang

Sure. Specific it port X.X This tonnes. as of lower inventory, is year. time see XX% today, is same last we the million than of below

recall, you X.X itself if million. is the national So reserve

really the minimal. available is really tonnes So

comment. the half just to domestically has believe that's So also, drawdown And very the a slower down. earlier support largely we demand be world Joc's China, With strong in strong in inventory. spring will import second

have expected. of contract sooner than the So would a come we foresee a negotiation the buyers, importers will to many have to the for table new

Joc O'Rourke

like probably the Asian lower Chinese contract is price. $XXX that the to highlight Just than

them really these receive for makes difficult at at the that So prices product to - it they those need prices.

Operator

with question Berenberg. Adrien next from is Tamagno Our

open. is line Your

Adrien Tamagno

question. Hello, good morning. my Thanks for taking

Brazil. on question So

expectation you specific things, the case you and that's bit in And the more mentioned So channel to QX country. low like your the Brazil, would also I in for ask globe. a inventories across volumes

Joc O'Rourke

higher strong volumes our the belief we Well, of Adrian. what quarter with you, in fact, slightly is for prices yes that Thank up than is be will our low are product. - a in because most shop on price the we it normal expectations is Brazil. the deliver of of although are course But our of product. than the third of inventory the where do usual, yes, books built lower relatively inventories Obviously, is the price

is expect for expectation planting Brazil. the What quarter in little will we strong a in our third maybe So conditions, very the see with drought be to there later.

into this there push in prices and heading probably might slightly, quarter strong purchases for fourth be the quarter. it higher back pretty fertilizer third So will demand but and

Operator

is question Beacon from Next Pickens Research. with Michael

is Your open. line

Michael Pickens

Yeah. Hi. Good morning.

place Just there at when of that of little to trying understand purchases the distribution kind the bit you you distribution little $XXX think just freight wanted typically a with some wanted specifically business. be is When of production. have timing to just about phosphate margins at on potash. And your normal on distribution business to follow the we up on a much the market, also, maybe production of a kind how of some And took the those understand bit advantage then your And in mentioned sales of Brazil. more looking side. inputs, Thanks. might than higher side,

Joc O'Rourke

Michael. Yeah, and report of business. earnings couple way the The Great distribution questions. thanks, our we

Competex from purchasing [ph] within we're course Of and market. the

an is position, have us So expect you to what you if will. ongoing there can

so so And market as margins. a we realize rising in at and question greater see cases much we management environment, certainly no making product district understand our in efficient execute will this market that very to a game. the of positioning we advantage and margin possible. there's have we're And able sure the is of team take And like today, positions on as that take can that that we

that in The thing, which in of I both country cost to compete perspective. Brazil, advantage is second question, our being part from whole thesis of is to your transportation mean, and a Brazil, important an investment having comes great piece in a

- have because a look effectively we you cost basis overall competitive at of also assets competitive than really advantage we - on product if had production, is basis. competitive very our it's can didn't logistics the if more have. on our And It's a in so country we take moving

Operator

Joel from Jackson Markets. next BMO Capital Instructions] is question from [Operator The

open. Your line is

Joel Jackson

liquidity Canada commentary Hi, potash market. talked Joc, about appreciate on rail. good earlier I the around issues in Joc. ports Western your and in the the wildfires, morning you

now and weeks, seeing Southeast saying real, interesting your of getting XXX. now deal prices last I'm And report [Indiscernible]. every that of based Brazil, getting the potash, we're the kind XXX or of one on some really competitors you Some been then Asian and in deal told have I've just been week benchmarks aren't maybe couple me two

are as So market Like the is benchmarks selling I normal want liquid now in versus you're right for to what these what usual? know potash the time. liquidity as

Joc O'Rourke

the Joel, thanks for question.

seasonal. not Let very in selling all, first the question We're right now. me of is North saying a start by America lot liquidity

And recently. at that customers most for the North of fall a are probably our was had we supplied Conference season. think XX% XX% to I Southwest crew American the

except not a of So in previous on for sense, whole contracts. lot delivering there's that activity

about then there's sort of Malaysia, there's of some liquidity would little normal. countries, Brazil sort a we're of Indonesia, slow. look the between bit if other in areas, If some at you think more that a and been you of again, in And business the be liquidity seasons Asian

it a this year. is been time hasn't for particularly at typical say, would this stage. of not that I liquid market a But So

Operator

Our comes last Rikin line of from Exane the Patel question from BNP.

is line Your open.

Rikin Patel

you. demand the in And sort as you think guys supply and potentially next of moment lack available flagged year? obviously Thank we to that think constraining the one Hope of million more Clint. you hi, you look do you could extend XXXX? could like shipment do Joc, get of at look XX of doing could to on potash curious just well. like? for XX.X size spin what million have XXXX into And demands But demand, tonnes What so forecast sort Hi, demand you're you just XXXX. release,

Joc O'Rourke

Thanks, Rikin.

We I I been think this we to supply limiter X and you growth, year. a some moderate year, of really quite million relevant, actually quite will had demand year. to expected in tonnes the if growth think that's last has

it getting year has I this So supply. as been growing what biggest limitation just think the has,

always we normal As look go would to into would we future, to be more returning I the think growth XXXX. It's into rates. hard but

the I talent things up is talk of a One about built this already. year to don't bunch think though, of about we've

growth normal ultimately which will market low. happen be be will fluid X% channel per question which to So more this be has - will case to Joel's previous XXXX in tonnes And for million what I the be, million then think to range. as that inventory build, there in channel half inventory called plus and question. states demand

So XXXX. channel if we the a could inventory higher build, growth in can demand see

to XXXX going ag depend looking it's growth. that? on So, anything But to pretty we're opportunity positive for Jenny, add markets. the to for obviously

Jenny Wang

soybean, be corn, to No, Indonesia, I believe the The will year is not continue likely going oil with palm ag potash think also you prices and commodity the believe but grow limitations We the get to this crops. supply factor. demand next We very other only to Malaysia, covered. for strongly. prices,

Operator

this There questions time. further are no at

back to call closing over remarks. the for turn Joc I Now

Joc O'Rourke

a everyone forwards. for strength And been we us us. to joining going will say strong quarter like would has I it Well, still look call. on see forward, this we for thank I as

improvements are performance. believe for with positive to We we performance continue drive markets to that, for be our operating And as for continued The in we continue that. well positioned go we forward.

for get Please Take vaccinated. safe So a call. day. thank our Go joining care. you have

Operator

you for concludes This participating. conference. Thank today's

disconnect. now may You

The Mosaic Company (MOS) 3 Aug 212021 Q2 Earnings call transcript