LatAm Agri 2Q26 Previews: Fundamentals Still Heavy, Staying Selective (SLC > Adeco > SMTO > TTEN)

Research evidence excerpt

LatAm Agri 2Q26 Previews: Fundamentals Still Heavy, Staying Selective (SLC > Adeco > SMTO > TTEN)

J P M O R G A N Latin America Equity Research

29 July 2026

LatAm Agri

2Q26 Previews: Fundamentals Still Heavy, Staying

Selective (SLC > Adeco > SMTO > TTEN)

Brazilian agribusiness equities remain among the main underperformers YTD LatAm Food & Beverages and

versus the Ibovespa - and not entirely without justification. With no clear signs of Agribusiness

a rebound in the key commodities that drive earnings (notably sugar and grains) Lucas Ferreira AC

and an increasingly cautious setup for some others (e.g., ethanol and urea), sector (55-11) 4950-3629

consensus has generally continued to drift lower. Into 2Q, we expect SLC to post lucas.x.ferreira@jpmorgan.com

a relatively solid print on a sequentially better mix, while TTEN likely comes in Banco J.P. Morgan S.A.

below expectations on softer industry margins (arguably partially reflected in the Larissa Perez

last two days’ -20% stock move, vs a flat IBOV index). Sugar & Ethanol names (55-11) 4950-6400

larissa.perez@jpmchase.com

should remain constrained by commodity-driven headwinds, though we see Adeco Banco J.P. Morgan S.A.

better positioned than SMTO this quarter given its exposure to stronger urea Froylan Mendez

pricing. For FY26, we are making modest downward revisions across the board (52-55) 5540-9482

except for SLC, where the main changes are pushed into 2027. Net-net, we remain froylan.mendez@jpmchase.com

Overweight on TTEN (with more cautious near-term momentum), Neutral on SLC J.P. Morgan Casa de Bolsa, S.A. de C.V., J.P.

Morgan Grupo Financiero

and SMTO, and Underweight on Adecoagro.

• 3tentos should post a materially weaker-than-expected quarter, primarily

driven by softer industry margins.