Daily Chemical Reactions

We Failed To Come Up With A Corny Headline Today, But Farmers Can Afford To Pay Up To Produce More
February 2, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
OMV, Shell, Corteva, Nutrien, CF Industries, Borouge, Borealis, Ashland, Air Liquide, TotalEnergies, Berry, Enterprise Products, Daicel, Trinseo, Panasonic, Honeywell, NuStar, Rayonier Advanced Materials, Repsol, Air Products, Elkem, Nouryon, Orbia, Aramco, Alpla, OQ Polymers, Sealed Air, Emerson, Evonik, Capstone Green Energy, Umicore, Avery Dennison, EDF Renewables, FedEx, CNH

Daily Chemical Reaction

We Failed To Come Up With A Corny Headline Today, But Farmers Can Afford To Pay Up To Produce More

Key Points:

  • Global agriculture markets will likely see another tight year in 2023, a positive for input sellers. Energy prices are not as high, but oil and gas profits will likely stay elevated relative to chemicals.
  • Oil and gas producer results for 2022 display record levels of profitability. We discuss the OMV and Shell postings and their likely inability to satisfy all investor types with their growth paths.
  • We discuss positive agricultural market commentary from Corteva, which we view as broadly favorable for other agricultural input sellers, such as Nutrien and CF Industries, in 2023.
  • We provide views on the EU green industrial plan, which intends to boost its competitive position in renewables relative to the US, but appears to carry much more bark than bite.
  • North American chemical rail traffic is notably weak YTD relative to YoY levels, while we find significant strength in farm products and grain. We flag recent weakness in the US dollar.

See PDF below for all charts, tables and diagrams

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