15% of Argentina’s Corn and Soybean Production Was Affected by Floods
Economic activity grew 6.4% in June year-on-year, while GDP shrank for the second consecutive month since April. There was a 0.7% contraction in June, compared to May. (Indec)
Corn planted area is expected to grow 9.6% in the 2025/26 season, compared to the previous year, to 7.8 million hectares. According to the Buenos Aires Grain Exchange, this could represent the second-largest planted area with corn in the country. (Bolsa de Cereales)
Rainfall flooded more than 1 million hectares in the Buenos Aires region in August, affecting around 15% of national corn and soybean production. (Confederation of Rural Associations of Buenos Aires and La Pampa)
Argentina will continue vaccinating against foot-and-mouth disease, but has created a commission with the government, industry, producers, and Senasa to discuss a future transition to “vaccine-free” status. Nicolás Pino, president of the Rural Society, highlighted progress in trade negotiations with the US and praised the authorization to export live cattle, pointing to interest from Arab countries and potential in the sale of bovine genetics. (Senasa)
Sugarcane 2025/26 harvest is expected to reach 668.8 million tonnes, a 1.2% decrease when compared to 2024/25. There was a 2.1% drop in average yields in Brazil, estimated at 75,575 kg/ha. Unfavorable weather conditions during regrowth and crop development in 2024 contributed to the reduction, especially in the Center-South region, where outbreaks of fires, irregular water supply, and excessive temperatures were recorded. (Conab)
The Brazilian Association of Vegetable Oil Industries expressed its agreement with the Federal Court’s decision suspending Administrative Council for Economic Defense’s ruling against the Soybean Moratorium. In a statement, the organization stated “the decision recognized the need for further debate on the Soybean Moratorium and was consistent with Abiove’s view on the legality of the pact”. The association, which represents Brazil’s leading soybean processing and exporting companies, had filed a “writ of mandamus” against the Administrative Council’s precautionary measure. (Abiove)
Beef tallow consumption for biodiesel is expected to increase in Brazil to offset a decline in exports to the US, which imposed a 50% tariff on Brazilian meat and byproducts. Between January and July, shipments totaled 290,800 tonnes, with almost 98% destined to the US. The tariffs make it prohibitive to export to the US, but Brazilian meatpacking plants and biodiesel producers are expected to absorb some of the surplus. (Scot Consultoria; Abiove)
Coamo, Brazil’s largest ag cooperative, will invest US$ 550 million in the construction of a port in Itapoá, State of Santa Catarina. The new port is scheduled to begin operations in 2030. Three berths will be built, expected to handle 11 million tonnes per year. (Coamo; Santa Catarina Government)
Brazilian egg production is expected to reach 62 billion units in 2025, up 7.5% from 2024. Per capita consumption could reach 288 units in 2025 and 306 units in 2026, according to estimates, which would place Brazil among the 10 largest egg consumers worldwide for the first time. (ABPA)
The second corn crop reached 94.8% of the planted area, with a worse performance when compared to the previous season. Yedda Monteiro, an intelligence and strategy analyst at Biond Agro, states this delay compromises the best season for exports. “Brazilian corn has a more competitive window from July to September. If the harvest and the export program are delayed, some of this corn only reaches the market when the US is already offering large volumes, reducing Brazil’s market share in foreign sales and putting pressure on prices”. Brazilian production is expected to surpass 130 million tonnes in 2025. “It is unlikely external demand will absorb all of this volume, since our competitive window is relatively short”, emphasizes Monteiro. (Biond Agro)
Mexico replaced the US and became the second-largest market of Brazilian beef after the US tariffs, only behind China. Beef exports to Mexico had already totaled more than 10,000 tons as of August 25th, placing the country in second place in the ranking. In the same period, the US received only 7,800 tonnes, falling to fifth place, behind China, Mexico, Russia, and Chile. (ABIEC)
Gabriel Galípolo, president of the Brazilian Central Bank, said the country’s basic interest rate (Selic) is expected to remain high for a long time. Currently, the rate is set at 15% per year. “We are facing a scenario where we have missed the inflation target twice, in late 2024 and mid-2025, and with market and Central Bank expectations and projections indicating that this convergence toward the inflation target is occurring slowly. This is what has demanded a more restrictive monetary policy”. (Central Bank; Fenabrave)
Brazilian methane emissions increased 6% between 2020 and 2023. Three-quarters of the country’s methane emissions were related to beef and dairy cattle production, which accounted for 14.5 million tonnes of total emissions in 2023, equivalent to 406 million tonnes of carbon dioxide (CO2) equivalent. 2023 was the year with the second-highest level of methane emissions in Brazil. “Methane is a greenhouse gas that can warm the planet much more than carbon dioxide”, according to the Climate Observatory (“Observatório do Clima”), a network of environmental organizations. “Its molecules… have a global warming potential 28 times greater than that of CO2”. (Climate Observatory)
Following the resignation of Esteban Valenzuela, Ignacia Fernández is the new Minister of Agriculture. Fernández previously served as Undersecretary of Agriculture from March of 2023 to May of 2025. (Government of Chile)
The Colombian Agricultural Institute ordered the slaughter of 35,680 breeding hens from Brazil due to suspected Salmonella gallinarum. According to HY-Line Colombia, which specializes in laying hen genetics, the decision was mistaken and the hens are part of a clinically healthy flock valued at over US$ 8 billion. The company claims the Institute committed a laboratory error involving cross-contamination. “The flock remained in strict quarantine for almost eight months, showing no clinical signs consistent with Salmonella gallinarum, and underwent numerous diagnostic tests that clearly ruled out the presence of the bacteria.” (HY-Line Colombia)
Agricultural GDP slowed in the 2Q25, growing only 3.8% compared to 6.8% in the first quarter. The loss of growth in coffee, which had been driving the sector, was a determining factor. Colombia aims to increase its share of the US coffee market. Brazil, the largest supplier of Arabica to the US, faces a 50% tariff on green coffee, while Colombia faces a rate of only 10%. (Bancolombia)
Business confidence in Colombia increased in July. The Business Confidence Index reached 27.2% and the Industrial Confidence Index reached 6.7%, driven by improved expectations and increased orders. Exports showed a positive balance in the 2Q, but still face logistical obstacles and uncertainty regarding performance in the coming months. Luis Fernando Mejía, executive director of the independent economic and social research center Fedesarrollo, highlighted these gains reflect an improvement in business sentiment. “The increase in the Business Confidence Index is due to greater optimism regarding the current economic situation and expectations for the next half of 2025″. (Fedesarrollo)
Colombia produced 22.1 million tonnes of sugarcane in 2024, notable for its high productivity per hectare, which can reach up to 180 tonnes, with an average of 120. Claudia Calero, president of Asocaña, said the country is a world leader in agricultural and industrial productivity in the sugar sector. “Colombia surpasses other major producers in sugar production per hectare, such as Australia, the USA, Mexico, India, the EU, as well as Brazil”. (Asocaña; Procaña)
Agro-export certification system will be created in 2026. On January 1st, 2026, Mexico will implement the Mexican Agro-Export Certification System, starting with avocados. The goal is to ensure that agricultural exports are not connected to deforestation, irresponsible water use and irregular labor. The program will be coordinated with producers in Michoacán and Jalisco and will gradually cover other products to maintain the country’s competitiveness in international markets. (Sader)
Wheat exports from the 2024 harvest increased by 215,933 tonnes at the end of July, representing an increase of 80% when compared to the same period in the previous season, due to a significant recovery in production. Exports of the 2024 harvest are expected to conclude in September. (Capeco)
Uruguay recorded only 62 land deals totaling 66,500 hectares in the 1H2025, less than half of 2024. This decline was caused by the appreciation of agricultural and forestry areas and lower demand for livestock. (Agroclaro)
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