Fertilizer stocks, including Mosaic Company (NYSE:MOS) and Nutrien Ltd (NYSE:NTR), got a lift on Monday after Belarusian President Alexander Lukashenko suggested a coordinated production cut in potash with Russian producers.

What To Know: Lukashenko has proposed approaching Russian fertilizer producers to coordinate a 10% potash output cut in an effort to raise prices. He reportedly made the suggestion during a meeting with Andrey Rybakov, CEO of Belaruskali, the country's largest potash producer. Lukashenko said the cut could increase potash prices and help the industry adapt to recent economic pressures, according to Bloomberg.

"Everyone will understand that this is an expensive product and you need to pay the appropriate amount for it," Lukashenko reportedly said, suggesting Rybakov should discuss the idea further with Russian companies.

Belarus and Russia collectively supply about 40% of the world's potash, a critical ingredient in agricultural fertilizers. Although Belaruskali faces sanctions from the EU and U.S., Russia's main potash producer, Uralkali, is not under similar restrictions, giving it more flexibility in the market.

The proposed cut comes at a time when cheap potash supplies are available from other markets and the potash industry is facing higher costs due to sanctions and market rerouting. If implemented, this coordinated reduction could support higher potash prices, benefiting producers globally amid shifting trade dynamics.

Price Action: Mosaic shares closed Monday up 5.47% at $28.36 and Nutrien shares closed the day up 5% at $50.78, according to Benzinga Pro.

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