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