Agriculture

Rostselmash, Russia’s largest agricultural machinery manufacturer, announced it will suspend production in June due to a collapse in demand, as farmers grapple with crippling loan rates, high export taxes, and soaring input costs. The move threatens Russia’s ambitions to dominate global grain markets and highlights the deepening crisis in its agricultural sector. Key Points: Broader Implications:

Brazil, the world’s largest chicken exporter, confirmed its first bird flu outbreak on a commercial poultry farm Friday, prompting immediate trade bans from China, the EU, and South Korea, while other key buyers imposed regional restrictions. The discovery threatens $10B in annual exports and risks further disruptions to global meat supplies. Key Developments: Global Context:

Argentine soy farmers are working around the clock to harvest their rain-delayed crop before new storms hit, battling muddy fields and fungal risks to salvage a harvest vital to the country’s dollar-starved economy. Key Challenges: Economic Stakes:

The 2025-26 U.S. grain export season is shaping up with corn leading the charge, soybeans lagging behind, and wheat holding competitive ground, according to early sales data and USDA projections. Key Highlights:

Brazil, the world’s top sugar exporter, is expected to ship 35.1 million metric tons of sugar in the 2025/26 season—matching last year’s near-record volume—as mills continue favoring sugar production over ethanol despite a slight dip in cane supplies, according to JOB Economics. Key Highlights: Market Impact:

While the U.S.-China tariff truce has eased tensions, American farmers warn that Brazil’s competitive edge—lower prices, zero tariffs, and a record soy harvest—will continue to dominate China’s imports, leaving little room for a U.S. comeback. Key Challenges for U.S. Soy: Market Realities: Farmer Sentiment:

Raw sugar and cocoa futures surged this week, with sugar climbing 3.3% off a 3.5-year low and cocoa bouncing back on short-term supply squeezes, while coffee prices remained range-bound amid mixed production updates. Key Market Moves:

China, the world’s top wheat producer, has re-entered the global market with purchases of 400,000–500,000 metric tons of milling-quality wheat from Australia and Canada, traders say, as scorching temperatures threaten yields in key growing regions like Henan province. Key Developments: Market Impact:

The UK’s National Farmers’ Union (NFU) has raised alarms over the newly announced U.S.-UK trade deal, expressing concerns that two key agricultural sectors will bear the brunt of tariff concessions made to benefit other industries. NFU President Tom Bradshaw warned that British farmers risk being disproportionately impacted in future negotiations if the imbalance persists. Key Concerns:

China has reinstated five major Brazilian soybean exporters—including subsidiaries of Cargill, ADM, and Olam—weeks before President Luiz Inácio Lula da Silva’s state visit, signaling a strategic move to solidify Brazil as its top soy supplier amid escalating tensions with the U.S. Key Details: Strategic Timing: