LATIN AMERICA EQUITY RESEARCH

Research evidence excerpt

LATIN AMERICA EQUITY RESEARCH

Latin America Equity Research

LatAm First to Market 01 July 2026

Top Stories

LatAm Agribusiness (Lucas Ferreira)

3tentos (OW) & SLC Agricola (N): El Niño overhang persists; asymmetric setup favors TTEN

We are updating our models for SLC Agrícola and 3tentos (TTEN), rolling our valuation horizon to YE2027 and refreshing key

macro assumptions, against a backdrop of elevated weather uncertainty and still-volatile input/energy variables. In our view,

the key near-term debate is less about what has already been priced into SLC after a sharp de-rating and more about the

forward path for yields, hedging protection, and potential balance-sheet catalysts—factors that, taken together, keep us

cautious while El Niño risk remains on the radar. For TTEN, we see a more asymmetric setup: while the stock is not immune to

second-order impacts from regional weather and agribusiness credit conditions, our base case is that it would likely take a

more extreme climatic outcome to materially derail fundamentals, and we view current valuation as offering a more favorable

risk/reward profile. Overall, we remain broadly defensive on the complex and continue to view SLC as a potential “funding” leg,

while acknowledging that relative-value positioning (including a long TTEN/short SLC framework) may be increasingly debated

as investors weigh what is already reflected in prices versus upcoming catalysts.

Brazil Fuel Distribution (Milene Clifford Carvalho)

Gradual exit from fuel support measures underway

Brazil signals a gradual exit from fuel support measures, while also paving the way for the removal of oil export taxes.

The government announced the removal of the R$0.35/L diesel subsidy, while maintaining the remaining R$1.12/L diesel