Annual inflation fell from more than 200% in late 2023 to approximately 32.5% in early 2026. GDP increased in 2025 (+4.4%) and is to grow 3.5% in 2026, but high inflation and limited international reserves are still considered as risks. Argentina recorded the highest bank nonperforming loan ratio in Latin America, with impaired loans representing 7.6% of the portfolio. The rate exceeded Ecuador (4.5%), Peru (4%), Brazil (3.9%) and Mexico (2.2%). (IMF; World Bank; 1816 Consulting)
Argentina enacted Resolution No. 392/26, requiring cameras equipped with AI at cotton seed processing facilities to monitor non-certified seed. Only 25% of the cotton area uses certified seeds. (Inase; Senasa)
The Lower House of Congress resumed discussion of an amendment to the Budget Law allocating US$ 42 million/year to the Agricultural Emergency Fund in response to El Niño impacts. (Minagri)
China and Argentina renewed a bilateral currency swap agreement worth approximately US$ 19.3 billion for five years. The agreement may be extended by mutual consent. (People’s Bank of China)
Grain ports resumed regular operations on August 5th after an approximately 24-hour stoppage by maritime workers affected at least 45 vessels. The protest ended after the government suspended a deregulation decree and negotiated lower sector tariffs. (CAPyM)
Law No. 15485/2026 strengthened oversight of road freight in Brazil. Each freight operation must be registered through the Freight Operation Identification Code, including cargo, price and payment information. Payment must occur within 30 business days. Violations may result in fines and higher logistics costs. (Presidency of Brazil)
El Niño is to strengthen in 2H26 and may reach “very strong” intensity between Spring and early Summer. The phenomenon increases the risk of heavy rainfall in southern Brazil and drought, heat and forest fires in the Amazon, with conditions expected to persist into early 2027. BB Seguridade, an insurance and private pension holding company, expects limited El Niño impacts in 2026 because summer and winter crops are already advanced. In 2027, rainfall from September to November could disrupt planting and increase risks for second-crop corn. (Inmet; BB Seguridade)
Cattle slaughter in Brazil is projected to fall from approximately 42 million head in 2025 to 40 million in 2026. The Brazilian Beef Exporters Association also warned about the impacts of conflicts, tariffs and trade restrictions on the sector. (Abiec)
MAPA published new lower-risk planting calendars for second-crop corn intercropped with brachiaria in 15 states. The Agricultural Climate Risk Zoning indicates where and when planting is safer in the 2026/27 season and supports access to rural insurance and the Agricultural Activity Guarantee Program. (MAPA)
Nine in ten respondents in Brazil fear that El Niño will increase food prices and inflation, according to a Nexus survey. Respondents also expressed concern about health impacts, water and electricity bills and supply disruptions. (Nexus)
The Court of the State of São Paulo approved the bankruptcy protection (similar to US’ Chapter 11) plan filed by Raízen, a sugar, ethanol and bioenergy company from Brazil, validating the renegotiation of approximately US$ 12.06 billion in financial debt. Creditors representing 81.6% agreed to the proposal, which includes an approximately US$ 786 million capital increase with Shell Brasil Petróleo and divestments from non-strategic areas. (Raízen)
ADM appointed Luiz Rebellato as the commercial director for Grains and Inputs in Brazil. He will oversee origination, business development, commercial relationships and team coordination. (ADM Brasil)
Pedro Miguel da Costa e Silva, Brazilian ambassador, called for long-term planning for the agricultural sector during a meeting of the Mercosur–EU Working Group. European requirements to verify the non-use of antimicrobials in animal protein and live animal exports could block shipments from Brazil. (CNA)
Banco do Brasil launched a credit line financing up to 100% of domestically manufactured agricultural machinery, capped at approximately US$ 5.89 million per borrower. Repayment terms reach 60 months, with annual interest rates of 9%–9.5%. The Brazilian Innovation Agency will allocate approximately US$ 1.96 billion. (Banco do Brasil; Finep)
Bankruptcy protection requests (similar to US Chapter 11) in agribusiness increased 66% in one year, with 1,263 registered entities undergoing the process. The total reached 1,575 considering agroindustrial and trading companies, at the end of 1H26. The share of agribusiness in bankruptcy protection cases was six times the national average. The soybean supply chain led, with 589 farmers. (RGF; Bizdoc)
Meat, dairy and seafood industry leaders in Brazil called for more coordination to increase competitiveness and exports. At the 2026 International Poultry and Pork Show (SIAVS), representatives reported approximately US$ 20 billion in beef exports and US$ 400 million in seafood exports during the previous year. The dairy sector remained a net importer. (SIAVS; ABPA)
During a seminar organized by Frutas de Chile, the Southern Hemisphere Fruit Alliance outlined environmental and traceability requirements for fresh fruit packaging supplied to the EU. The Packaging and Packaging Waste Regulation will be in force from August 12th to fresh fruit farmers and exporters. (SFA; Frutas de Chile)
The USA imposed a 12.5% tariff on Chilean exports under a Section 301 investigation related to forced labor. The measure, which also affects 60 other trading partners, has raised concerns in the fresh fruit sector, which highlighted traceability and labor standards and is seeking a review through bilateral negotiations. (USTR; Government of Chile; Frutas de Chile)
Colombia allocated approximately US$ 209 million to measures protecting the ag sector from El Niño impacts in 2026/27. The strategy includes credit, crop insurance, water management and direct support for farmers. (Presidency of Colombia; Ministry of Agriculture)
The USA did not approve the automatic 16-year extension of the USA-Mexico-Canada Agreement (USMCA), known as T-MEC in Mexico, which replaced NAFTA in 2020. The agreement will remain in force until 2036 but will undergo annual reviews. Agriculture is included in the negotiations, while Mexico imported 11.7 million tonnes of yellow corn in 1H26 (+1.01% when compared to 1H25), mainly for the livestock and animal feed sectors. (USTR; Secretariat of Economy)
Paraguay imported 1,893 ag machines in the 1H26 (+29.5% when compared to 1H25), totaling US$ 177.4 million (+27%). Tractors led volumes, sprayers posted the fastest growth (+66.7%) and combine harvesters were the only category to decline (-7%). (Capeco; Ministry of Finance of Paraguay)
Rainfall shortages in southern Peru are affecting crops such as rice, wheat, barley, quinoa and cotton, while a heat wave in the north is increasing water stress and the risk of pests and diseases. It is recommended to perform stronger climate and phytosanitary monitoring, technical assistance and efficient water use. (CultiVida)
The Regional Government of Cusco distributed 200 tonnes of oat hay across the region’s 13 provinces, benefiting 5 thousand farmers. The 10 thousand bales, weighing 20 kg each, will be used to feed sheep and camelids during the cold season. (Regional Government of Cusco)
The new minister of agriculture, Marco Vinelli, announced that the government will prioritize access to water, technical assistance, credit, agricultural health services, innovation and finding new markets for 2.1 million small farmers. The goal is to transform family farming over the next five years. (Midagri)
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