The Point for Latin America

Research evidence excerpt

The Point for Latin America

in the Urea export market (Reuters, 05/27/2026), while high prices may lead to a

slight destruction of Urea demand or leading producers to prioritize the use of

ammonium sulfate (Globo Rural, 03/16/2026), in an attempt to preserve

margins. Thus, we are lowering our estimates and TP to US$11.75/sh(from

US$14.50/sh). Meanwhile, we maintained our Neutral Rating, given the

unattractive yields/multiples and worsening momentum for its key commodities,

combined with potential risks around El Niño. However, we keep our positive view

on operational side, as AGRO is deleveraging after the acquisition of Profertil.

Gabriel Barra

SLC Agricola SA (SLCE3.SA) - Key takeaways from 2026 Farm Day

SLC Agrícola held its Farm Day 2026, updating 2025/26 and 2026/27 crop

projections, hedge positions, irrigation, and the 2026 land appraisal report. These

updates reinforce the company's focus on climate risk mitigation and operational

stability. SLC executes a disciplined capital allocation policy, maximizing returns

by optimizing the production mix while expanding its footprint through owned and

leased land, targeting a 2x leverage ratio. While updated land valuation confirms

asset appreciation, we remain cautious. All eyes remain on 2026/27 margins, given

potential negative impacts from a strong El Niño and cost pressure, supporting our

Neutral rating. The company has secured phosphate and potash needs and is

evaluating its production mix and nitrogen acquisition for the upcoming season.

Industry

Brazil Insurance - Multi-Line - SUSEP April/26: Credit-life and Life Premiums

Continue to Struggle

SUSEP released April data. BBSE (Seg+Prev) net income increased 12% y/y,

propelled by financial income. Rural premiums were down 20% y/y, though rural