Agricultural company, Mosaic Co(MOS) reported a decrease in its second quarter production estimate Wednesday.
MOS, which focuses on selling phosphate and potash, has reported that they are expecting lower production this year due to a decline in product demand. The company said that there is weak international demand for its products since many distributors are concerned to make purchases due to price risk. Volume is expected to remain low until 2013.
The company originally estimated producing potash volumes in the range of of 1.6 million to 1.9 million metric tons, but has changed that estimate to a range of 1.3 million to 1.4 million metric tons.
Production of phosphate is also expected to decrease in volume, which the company now estimating a range of 2.9 million to 3.1 million metric tons, down from its previous estimate of 3 million to 3.4 million metric tons.
Shares declined by 4% after this news in after hours trading Tuesday.
Mosaic shares were down $2.63, or -5.18% during premarket trading Wednesday.
The Bottom Line
Shares of Mosaic (MOS) have a 1.97% dividend yield, based on last night’s closing stock price of $50.75. The stock has technical support in the $46 price area. If the shares can firm up, we see overhead resistance around the $52-$54 price levels.
Mosaic Co(MOS)is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.