Shares of fertilizer producers, including Compass Minerals International, experienced gains following comments from Belarusian President Aleksander Lukashenko. Lukashenko suggested that state-owned Belaruskali should consider cutting potash production.
The proposed reduction, estimated at 10% to 11% across Belarus and Russia, could decrease global potash supply by approximately 4%. This potential supply constraint is seen as a positive development for potash prices.
For Compass Minerals, which produces sulfate of potash (SOP), a reduction in global potash supply could lead to a more favorable pricing environment for its Plant Nutrition products. This external market dynamic could improve profitability in that segment.
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