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Brazil's Grain Super-Cycle Cools In 2026, But The Boom Is Far From Over
(MENAFN- The Rio Times) Brazil is stepping down from an extraordinary harvest, not falling off a cliff. IBGE's first forecast for the 2026 grain crop points to 332.7 million tons of grains and oilseeds – 3.7% less than the 345.6 million tons estimated for 2025, a year that set a new production record.
The change is mainly about weather and crop mix. In 2025, much of the farm belt enjoyed favorable conditions, pushing soybeans, corn, cotton and sorghum to all-time highs.
For 2026, IBGE expects a more uneven year under La Niña, with heavier rains in parts of central Brazil and drier conditions in the south. That still supports a massive harvest, but trims yields for several crops.
Soybeans remain the engine. After an estimated 165.9 million tons in 2025, IBGE projects another record of 167.7 million tons in 2026, helped by slightly higher productivity and a modest expansion in planted area.
Corn is the main drag: output is forecast to fall 9.3% to 128.4 million tons. The first corn crop should edge up to 26.3 million tons, but the larger second crop may shrink 11.6% to 102.1 million.
Agribusiness remains Brazil's growth engine
Cotton is expected at 9.3 million tons, down 4.8%, while rice should fall 6.5% to 11.8 million tons. Sorghum is projected to retreat 11.6%, wheat 3.7% and beans 1.3%.
Even so, harvested area is due to rise 1.1% in 2026 to 81.5 million hectares, with rice, corn and soybeans alone accounting for more than 90% of output.
Regionally, output should grow in Paraná and jump in Rio Grande do Sul, but fall in Mato Grosso, Goiás, Mato Grosso do Sul, Minas Gerais and several northern and northeastern states.
For Brazil's economy, the message is clear. Agribusiness already accounts for close to a quarter of GDP, nearly half of exports and about 28 million jobs.
A modest cooling after an exceptional year does not change the fact that privately driven farming remains the country's most reliable growth engine – and a critical supplier of food and feed worldwide.
The change is mainly about weather and crop mix. In 2025, much of the farm belt enjoyed favorable conditions, pushing soybeans, corn, cotton and sorghum to all-time highs.
For 2026, IBGE expects a more uneven year under La Niña, with heavier rains in parts of central Brazil and drier conditions in the south. That still supports a massive harvest, but trims yields for several crops.
Soybeans remain the engine. After an estimated 165.9 million tons in 2025, IBGE projects another record of 167.7 million tons in 2026, helped by slightly higher productivity and a modest expansion in planted area.
Corn is the main drag: output is forecast to fall 9.3% to 128.4 million tons. The first corn crop should edge up to 26.3 million tons, but the larger second crop may shrink 11.6% to 102.1 million.
Agribusiness remains Brazil's growth engine
Cotton is expected at 9.3 million tons, down 4.8%, while rice should fall 6.5% to 11.8 million tons. Sorghum is projected to retreat 11.6%, wheat 3.7% and beans 1.3%.
Even so, harvested area is due to rise 1.1% in 2026 to 81.5 million hectares, with rice, corn and soybeans alone accounting for more than 90% of output.
Regionally, output should grow in Paraná and jump in Rio Grande do Sul, but fall in Mato Grosso, Goiás, Mato Grosso do Sul, Minas Gerais and several northern and northeastern states.
For Brazil's economy, the message is clear. Agribusiness already accounts for close to a quarter of GDP, nearly half of exports and about 28 million jobs.
A modest cooling after an exceptional year does not change the fact that privately driven farming remains the country's most reliable growth engine – and a critical supplier of food and feed worldwide.
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