Source: ANI, Updated Jan 5, 2026
The global agriculture sector is expected to stabilize in 2026, though conditions will remain uneven across key crops.
Soybeans:
- Supply is projected to tighten in the 2025–26 season, with ending stocks declining year-on-year.
- Demand is at record levels, despite lower global production.
- US production is expected to fall 2.8% YoY to just under 116 million tonnes, due to a 7.1% drop in planted area, amid ongoing US–China trade tensions.
- Brazil is set for a record soybean harvest of around 175 million tonnes, up 2% YoY, solidifying its role as the leading global supplier.
- A US–China deal could shift US acreage from corn to soybeans, with corn yields expected to fall to five-year averages.
Corn:
- Prices have been under pressure due to record production.
- The 2026–27 marketing year may see a global deficit of ~39 million tonnes.
- US corn production could drop 7% YoY to 394 million tonnes, still the second-largest harvest on record.
Wheat:
- Global stocks are projected to rise by ~10 million tonnes YoY to 271 million tonnes.
- Production is expected to reach 829 million tonnes, up 3.5% YoY.
Sugar:
- Prices fell over 20% in 2025.
- A projected surplus of ~7 million tonnes in 2025–26 could be the largest since 2017–18.
Cocoa:
- Prices collapsed nearly 60% in 2025 due to surplus conditions.
- Ecuador’s production is rising, expected to reach 580,000 tonnes in 2025–26, up 4% YoY, potentially surpassing Ghana as the world’s second-largest producer.
Coffee (Arabica & Robusta):
- Arabica prices surged 25% in 2025 due to poor weather in Brazil and tight stocks but are expected to decline in 2026.
- Supply is projected to improve with stronger Brazilian arabica and Vietnamese robusta production.
- US tariff removals on Brazilian coffee will further normalize flows.
Overall Outlook:
- The agricultural market is likely to stabilize, but commodity-specific dynamics will continue to cause uneven conditions, with supply shifts and demand trends creating varying price pressures. (ANI)
- 317 words, 2 minutes read time.
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