Daily Chemical Reactions

Old McDonald Doing Better Than Ronald – High Crop Prices Great for Farmers, Negative for Happy Meals
August 4, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Nutrien, CF Industries, Mosaic, Bayer, FMC, Occidental, Energy Transfer, Cheniere, APA Corp, Enterprise Products, Braskem, Borealis, Chesapeake Energy, ConocoPhillips, Covestro, Aramco, Lanxess, BASF, Air Products, Albemarle, LyondellBasell, Johnson Matthey, Sinopec, Koppers, Glencore, Asahi Kasei, Freeport LNG, McDonald’s, Pertamina, NextChem, SolarWinds, LoopEnergy, Shell, Maersk, Motiva, Chambal Fertilizers

Daily Chemical Reaction

Old McDonald Doing Better Than Ronald – High Crop Prices Great for Farmers, Negative for Happy Meals

Key Points:

  • The North American agriculture sector is benefiting from elevated crop prices that have lifted farmer income despite higher input costs – a quick reversal is unlikely.
  • High Ex-US energy prices, notably natural gas, are benefits shown in many sector reports, but it’s only selectively spurring growth Capex for some, such as Occidental.
  • North American petrochemical and fertilizer producers benefit from advantaged global feedstock cost positions, but their demand profiles are notably different.
  • We highlight a few trends in carbon capture and sequestration noted in energy sector reports while further discussing recently proposed US Climate policies.
  • Demand headwinds continue to mount globally relative to supply; however, logistic issues, such as European issues with low Rhine river water levels, continue to linger.

See PDF below for all charts, tables and diagrams

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