Dow Chemical Sees Signs of a "Temporary" Slowing in Demand in Q2, Deutsche Bank Reports

Dow Chemical

is seeing some signs of a “temporary” slowing in demand in Q2, Deutsche Bank reports. “First, adverse weather conditions have impacted agricultural markets and seed plantings,” Deutsche Bank writes. “However this is being offset by high grain prices which incentivize farmers to increase their purchases of yield-boosting seed traits. “Secondly, in Coatings, adverse weather negatively impacted downstream demand in April. However, the company noted increased coatings demand in May. And thirdly, Japan supply chain issues caused a slowdown in auto OEM end markets during Q2. Dow still expects auto production to increase 5-6% in 2011 due to higher production in 2H'11.” Dow Chemical closed Tuesday at $35.58.