{"url_path":"/sec/mos/10-q/2026/item-3","section_key":"item-3","section_title":"Item 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-11","source_url":"https://www.sec.gov/Archives/edgar/data/1285785/0001285785-26-000067-index.html","accession_number":"0001285785-26-000067","cik":"0001285785","ticker":"MOS","issuer_name":"MOSAIC CO","edgar_url":"https://www.sec.gov/Archives/edgar/data/1285785/0001285785-26-000067-index.html","primary_entity_key":"0001285785","primary_entity_name":"MOSAIC CO"},"word_count":625,"has_tables":true,"body_markdown":"ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK\n\nWe are exposed to the impact of fluctuations in the relative value of currencies, the impact of interest rates, fluctuations in the purchase price of natural gas, ammonia and sulfur consumed in operations and changes in freight costs, as well as changes in the market value of our financial instruments. We periodically enter into derivatives in order to mitigate our foreign currency risks, interest rate risks and the effects of changing commodity prices, but not for speculative purposes. See Note 15 to the Consolidated Financial Statements in our 10-K Report and Note 12 to the Condensed Consolidated Financial Statements in this report.\n\nForeign Currency Exchange Contracts\n\nDue to the global nature of our operations, we are exposed to currency exchange rate changes which may cause fluctuations in our earnings and cash flows. Our primary foreign currency exposures are the Canadian dollar and Brazilian real. To reduce economic risk and volatility on expected cash flows that are denominated in the Canadian dollar and Brazilian real, we use financial instruments that may include forward contracts, zero-cost collars and/or futures. Mosaic hedges cash flows on a declining basis, up to 18 months for the Canadian dollar and up to 12 months for the Brazilian real.\n\nAs of March 31, 2026 and December 31, 2025, the fair value of our major foreign currency exchange contracts was $0.1 million and $1.0 million, respectively. The table below provides information about Mosaic’s significant foreign exchange derivatives.\n\n(in millions US$)As of March 31, 2026As of December 31, 2025\n\nExpected Maturity DateFair ValueExpected Maturity DateFair Value\n\nYears ending December 31,Years ending December 31,\n\n20262027202820262027\n\nForeign Currency Exchange Forwards\n\nCanadian Dollar$(0.7)$2.4 \n\nNotional (million US$) - long Canadian dollars$38.2 $— $— $181.1 $— \n\nWeighted Average Rate - Canadian dollar to U.S. dollar1.3619 — — 1.3859 — \n\nIndian Rupee$0.3 $0.5 \n\nNotional (million US$) - short Indian rupee$6.0 $— $— $42.0 $— \n\nWeighted Average Rate - Indian rupee to U.S. dollar90.9956 — — 89.0340 — \n\nForeign Currency Exchange Non-Deliverable Forwards\n\nBrazilian Real$(0.7)$(1.4)\n\nNotional (million US$) - long Brazilian real$— $— $— $95.0 $— \n\nWeighted Average Rate - Brazilian real to U.S. dollar— — — 5.6132 — \n\nNotional (million US$) - short Brazilian real$177.5 $— $— $— $— \n\nWeighted Average Rate - Brazilian real to U.S. dollar5.2686 — — — — \n\nIndian Rupee$0.7 $— \n\nNotional (million US$) - short Indian rupee$29.2 $— $— $28.8 $— \n\nWeighted Average Rate - Indian rupee to U.S. dollar92.3701 — — 90.1810 — \n\nChina Renminbi$0.5 $(0.5)\n\nNotional (million US$) - short China renminbi$87.2 $— $— $86.4 $— \n\nWeighted Average Rate - China renminbi to U.S. dollar6.8786 — — 7.0585 — \n\nTotal Fair Value$0.1 $1.0 \n\n40\n\n[Table of Contents](#ie07f9e3bff1e4d899d8e77b8b3113b1a_7)\n\nFurther information regarding foreign currency exchange rates and derivatives is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 10-K Report and Note 12 to the Condensed Consolidated Financial Statements in this report.\n\nCommodities\n\nAs of March 31, 2026 and December 31, 2025, the fair value of our natural gas commodities contracts was zero and $(0.4) million, respectively.\n\nThe table below provides information about our natural gas derivatives which are used to manage the risk related to significant price changes in natural gas.\n\n(in millions)As of March 31, 2026As of December 31, 2025\n\nExpected Maturity DateExpected Maturity Date\n\nYears ending December 31,Years ending December 31,\n\n20262027Fair Value20262027Fair Value\n\nNatural Gas Swaps$0.0 $(0.4)\n\nNotional (million MMBtu) - long— — 0.9 — \n\nWeighted Average Rate (US$/MMBtu)$— $— $2.53 $— \n\nTotal Fair Value$0.0 $(0.4)\n\nFurther information regarding commodities and derivatives is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 10-K Report and Note 12 to the Condensed Consolidated Financial Statements in this report.\n\n41\n\n[Table of Contents](#ie07f9e3bff1e4d899d8e77b8b3113b1a_7)"}