Abstract: A coating composition useful on a variety of substrates, and particularly as a coating for ammonium nitrate which exhibit a reduced tendency to cake or dust once applied to the surface of a substrate. In one embodiment, the composition is composed of magnesium stearate and an effective amount of magnesium oxide, i.e. 10-15% by total weight of the coating composition, to substantially minimize or reduce the tendency of the composition to cake or dust, particularly after the coating composition is applied to the substrate. The composition preferably is colored by incorporating pigment in a reactant mixture of stearic acid and magnesium oxide before completion of the reaction. As a result the pigment is entrapped in a matrix formed by the magnesium stearate and magnesium oxide so that discoloration by contact with the coating composition, for example on the coated substrate, does not readily occur.