December 28, 2011 / 11:00 PM / 8 years ago

UPDATE 2-Mosaic to cut phosphate production on excess supply

* To reduce phosphate production by 250,000 tonnes

* Says second-quarter volumes for both phosphate and potash within prior forecast

* Shares down 2 pct in extended trade

Dec 28 (Reuters) - Fertiliser producer Mosaic Co said it will cut phosphate production by 250,000 tonnes over the next three months as excess supply weighs on spot prices.

“As dealers and distributors focus on the macroeconomic uncertainty and delay purchases for the North American Spring season, near-term supply of phosphate barges on the Mississippi River has exceeded near-term demand,” Chief Executive Jim Prokopanko said.

However, Mosaic said second-quarter volumes for both phosphate and potash were within its previously provided guidance ranges of 3.1-3.5 million tonnes and 1.7-2.1 million tonnes, respectively.

The Plymouth, Minnesota-based company also said it continues to expect strong demand for both potash and phosphate in 2012.

Shares of the company were trading down 2 percent after the bell. They had closed at $50.29 on Wednesday on the New York Stock Exchange.

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