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[BUSINESS] · Brazil, Morocco · 25 sources

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Brazil agriculture faces climate risks and fertilizer cost concerns

Brazil's agricultural sector faces a complex outlook for the 2026/27 cycle. Conab projects grain production to reach 366.6 million tons, a 1.4% increase, though average productivity may decline due to climate risks. A strong El Niño is highly probable, potentially causing irregular rainfall and temperature extremes across the country.

In the coffee sector, Brazil expects a record harvest of 67.6 million bags, driven by expanded planting areas and improved productivity. Soybean planting has commenced, currently covering 0.5% of the target area, with progress varying by region due to weather conditions.

Regarding inputs, Brazil is expected to start the 2026/27 season without an immediate fertilizer shortage, supported by existing stocks and a deal for 3.8 million tons of phosphates from Morocco. However, fertilizer imports are projected to drop by 10% to 12% compared to last year, and high costs remain a significant concern for producers.

Entities

Abrapa · André de Paula · Brazil · Companhia Nacional de Abastecimento · Conab · Gustavo Viganó Piccoli · Instituto Nacional de Meteorologia · Mato Grosso · Morocco · StoneX

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