Adds quotes from conference call in paragraph 7-8

By Sumit Saha

May 11 (Reuters) - Mosaic MOS.N withdrew its forecast for annual phosphate production on Monday and said it would curtail output at some facilities due to higher costs amid volatile raw material markets.

Shares of the company were down about 1% at $22.07.

The U.S.-Israel war with Iran has disrupted global supply chains, sending prices of key fertilizer raw materials such as sulfur and ammonia higher, adding pressure on the margins of fertilizer makers.

Mosaic, which said it was closely monitoring raw material markets, will also partially curtail production at its Louisiana and Bartow facilities in the U.S. and scale back additional production in Brazil.

The move follows its last month's announcement to idle its Araxa and Patrocinio phosphate facilities in Brazil and cut jobs, which led to a $442 million charge in the first quarter.

The company said it would review its operating plan for the remainder of the year and could further curtail phosphate production if margins don't improve.

"Every decision that you're seeing us taking today is driven by the marginal cost of sulfur ... and ammonia," the company said on the call, warning input costs will remain elevated and continue to pressure margins and cash flow.

The company had previously projected 2026 phosphate production volumes to be above 7 million tonnes.

For the current quarter, Mosaic expects phosphate sales volumes of 1.4-1.7 million tonnes, reflecting partial curtailments at Louisiana and Bartow.

It expects 2026 capital expenditure to be $1.25 billion, from an earlier forecast of $1.5 billion.

In its phosphates segment, Mosaic saw a $280 million increase in raw materials costs in the first quarter, while the cost of production per tonne in its potash segment rose 7.7% to $84.

The Tampa, Florida-based company reported adjusted earnings of 5 cents per share for the quarter, below analysts' estimate of 24 cents, according to LSEG data.