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Mosaic’s Sulfur Cost Shock: Is The Fertilizer Margin Squeeze Getting Worse?

The Mosaic Company’s first quarter 2026 results reflect a business operating in a challenging and volatile global fertilizer market, heavily influenced by geopolitical conflicts, particularly in the Persian Gulf region. These conflicts have significantly disrupted supply chains for key raw materials, including phosphate, sulfur, ammonia, and urea, intensifying an already tight market and exerting upward pressure on input prices. The company’s phosphorus segment capitalized on deferred demand from the end of 2025, achieving its highest quarterly sales volumes in five years (1.9 million tonnes), supported by strategic investments in U.S. phosphate assets that improved production capabilities. Three out of four U.S. facilities operated at targeted rates, with the significant turnaround at New Wales completed, setting the stage for improved phosphoric acid production going forward. Despite these operational gains, Mosaic faces notable risks, particularly around sulfur availability and rising raw material costs. While approximately 80% of the company’s U.S.