(Reuters) -Canadian fertilizer company Nutrien Ltd on Monday raised its full-year adjusted profit outlook, as strong global demand and tight supply helped it beat estimates in the third quarter.
Potash fertilizer prices have risen to their highest levels in more than a decade, lifted by strong prices of corn, palm oil and canola, as farmers looking to maximize yields use more fertilizer.
Also supporting prices were supply concerns triggered by U.S. and European sanctions imposed on Belarus, as well as rival Mosaic's production issues this year at its biggest potash mine.
Potash inventories remain below historic levels in key markets, with China accessing strategic reserves, Nutrien said in a statement. Canpotex, the export company owned by Nutrien and Mosaic, has said it sold out of potash through 2021.
"Global potash prices continue to increase in all key spot markets, driven by record global demand and strong grower margins," the company said.
U.S.-listed shares of Nutrien rose 1.3% to $72.45 in extended trade.
Nutrien increased its adjusted net earnings forecast to between $5.85 and $6.10 per share, from $4.60 to $5.10 per share earlier. Analysts on average were expecting $5.23 per share for the full year, according to Refinitiv IBES data.
On an adjusted basis, its profit of $1.38 per share slightly beat an estimate of $1.24.
Mosaic also posted its third-quarter results on Monday, falling short of Wall Street estimates for profit and sales.
Low inventories and the June closure of its Esterhazy K1 and K2 shafts in Saskatchewan dragged its sales volumes down 456,000 from last year.
The company said the second production hoist at its Esterhazy K3 mine entered service one month ahead of schedule, while the Colonsay mine ramped up to its targeted annual run-rate of about 1 million tonnes. (https://bit.ly/3GB0qXf)
(Reporting by Arunima Kumar in Bengaluru and Rod Nickel in Winnipeg; Editing by Devika Syamnath)