By Dhirendra Tripathi

Investing.com – Mosaic stock (NYSE:) fell 5.2% in premarket trading Wednesday after fell short of estimates.

According to the company, supply chain issues and COVID impacts are affecting global markets for potash and other phosphates.

According to the company, labor shortages in North America and delays on rail and truck tracks, as well as weather effects, are slowing down deliveries of products and inputs to customers. The company stated that Brazil’s congestion on roads and ports is also slowing down deliveries.

“These issues, combined with the current global supply and demand situation, point to tight markets for both phosphates and potash well into 2022,” it said.

This warning is issued as higher prices have a negative impact on fourth quarter volumes of two important fertilizers.

The net potash sales reached $2.6 Billion, an increase of $2 billion from the previous year. Phosphate net revenues rose from $3.1 billion to $4.9billion a year earlier. The second-half of 2017 saw a decline in phosphate sales volume due to Hurricane Ida’s impact.

It said that it would start the month with its old plan to buy back shares up to $400m. The program will continue with a $1 Billion repurchase programme.

The strong trend in commodity pricing is expected to keep driving fertilizer demand through 2022.

According to the company, global demand for oil and grains is high. As growers strive to maximise yields, strong global fertilizer demand is anticipated in 2022.

The total net sales increased by more than 56%, to $3.84 trillion. This was just below the estimates. An estimate of $1.97 was the estimated fourth-quarter adjusted profit. The actual result was $1.95.