"A small correction: DuPont does not produce fertilizers and never did."

Eoin Treacy's view Thank you for pointing this out. I mentioned DuPont as a company which benefits from the lower price of natural gas in last nights audio. While it produces ammonia and a number of chemicals and materials from natural gas, you are correct it does not produce fertilizer.

At current levels, a number of natural gas operations will be uneconomic. However, supply remains abundant and considerable additional demand will probably be required to lift prices out of their malaise.

Natural gas is additionally noteworthy because it has been excluded from the commonality of the energy sector. Oil, coal, uranium and the distillates are all in consistent medium-term uptrends. As a result, natural gas is becoming increasingly attractive as an alternative.

Whereas commodity input prices for just about every business have risen over the last year, industrial consumers of natural gas have benefited from a reduction. (Also see Comment of the Day on March 15th 2010).

DuPont, following an already impressive advance, still yields 3.05%. The share spent most of the last decade ranging below $50. It collapsed in 2008 and has trended consistently higher since March 2009. It is now testing the 2005 and 2007 peaks near $55 and while some consolidation might be expected in this area, a sustained move below $45 would be required to question medium-term upside potential.

Dow Chemical has a comparatively similar pattern to the Dow Jones Industrials Average. It remains in a consistent six-month uptrend and a sustained move below $34 would be required to question potential for continued upside. Eastman Chemical has been even more impressive on the upside but has a comparatively similar pattern otherwise. PPG Industries also reasserted its medium-term uptrend this week.

In Europe, DSM broke above the psychological €40 area in December and remains in a relatively consistent medium-term uptrend. Air Liquide has been consolidating in the region of the 2008 peak since October and found support in the region of the 200-day MA last week. BASF, Linde and Umicore have similar patterns. Akzo Nobel broke out of an 18-month range today. .

Agrium and Yara International have been among the leaders in the fertilizer sector at least in part because they benefit from lower natural gas input costs in ammonia production and because of their leverage to global food prices.