Brazil's Largest Farming Group Sees Crop Prices Recovering
SLC Agrícola, Brazil's largest farming group, is optimistic about crop prices as they move past their bottom. According to Chief Executive Aurélio Pavinato, soybean, corn, and cotton futures for delivery in 2027 are trading above comparable year-earlier levels due to tightening global inventories and rising input costs.
The company has secured its phosphate fertilizer needs for the 2026/27 season at a lower price before prices surged. SLC also bought nitrogen fertilizer near the year's low, securing 70% of its requirements. With this cost structure, Pavinato expects margins to improve in 2027.
SLC is preparing for potential drought by improving soil cover, fine-tuning planting dates based on rainfall forecasts, and expanding irrigated acreage to nearly 25,000 hectares in Bahia state. Despite the El Niño threat, the company aims to reduce input applications only where rainfall is insufficient.