What's the Buzz in Basics Volume LXXXIX

研报英文原文证据摘录

What's the Buzz in Basics Volume LXXXIX

Agriculture

Chemicals

Packaging

What's the Buzz in Basics Volume LXXXIX July 5, 2026

The Wolfe Byte

Given shifting rhetoric across our space - we anticipate volatility to continue into earnings. Debates re: whether

specialty coverage will "embrace" a declining raw material Px deck as it relates to 2H #s are now a core debate -

but we expect most mgmt. teams to be prudent.

Please join us at 11AM EST on Mondays for our Weekly Chemicals, Agriculture and Packaging Webcast - REGISTER

HERE.

Shifting Expectations? - or Simply a Mini Mean Reversion to Start Off 3Q?: While we're not taking the first ~2 days

of July trading as indicative of "what's to come" into 2Q earnings (especially given the holiday week), some of the intra-

sector moves were noticeable. We continue to be buyers on weakness across Electronics Materials (now comfortably

off of ~52 wk highs), while investors' newly found interest in Industrial Gases should remain supportive (more below).

We reiterate our cautious stance on Commodity Chemicals (at the time of our publication June contracts haven't settled),

but fully anticipate DOW's narrative to revert to cost cut optionality under new CEO Carter (should help stabilize shrs

into the print). Expectations have risen considerably for Packaging (BevCan) due to volumes, but we're beginning to

hear undertones re: NA op leverage (for both CCK and BALL) as "necessary" to sustain recent rallies (Euro bullishness

remains, Latam solid for BALL). The one theme that is noticeable across our coverage ex-Commodities (chems and ferts)

is buy-side #s are on the rise (esp. for Coatings), which renders the question re: whether 2H guides will be "enough"

to support current confidence.