Daily Chemical Reaction
November Air – Consumer Sentiment Falls, Energy Market Risk Suggests December Could Be Stinky
- The drop in US consumer sentiment MoM in November is a notable concern for many chemical end markets, especially given the risk of a winter-led energy price surge.
- The sharp volatility in global oil and natural gas around what are much higher averages for both – wherever you are in the world – indicates a lack of directional conviction.
- We highlight USDA estimates for increased corn plantings YoY in 2023, which aligns with our acreage view and supports our positive case on fertilizer use next year.
- We highlight mounting commentary on power purchase agreements (PPAs) as an item favoring some projects over others, especially considering rising renewable demand.
- We discuss the drivers of agriculture productivity and highlight continued macro indications global consumer demand troubles remain elevated compared to supply.
See PDF below for all charts, tables and diagrams