Agricultural outlook varies for El Salvador and Argentina

In El Salvador, the agricultural sector is beginning to recover from a drought that damaged approximately 15,000 manzanas of corn, or about 10,500 hectares, primarily in the eastern dry corridor. While initial damage estimates were lower, recent assessments show a 50% increase in affected land. Despite these losses, national supplies of basic grains like corn and beans remain stable due to successful harvests in less affected regions, preventing significant price pressures.

In Argentina, the 2026/27 agricultural campaign shows strong volume projections, with an estimated production of 157.9 million tons. However, rising costs for fuel, freight, and labor are squeezing producer profitability, particularly in areas far from port terminals. Additionally, the sector faces potential external challenges from the European Union, where new restrictions on pesticide use could impact Argentine agricultural exports valued at approximately US$ 4.62 billion annually.