Paraguay’s 2026-27 planting season starts with better prices but high costs

Paraguay’s 2026-27 agricultural campaign is opening with mixed expectations. Soybean acreage is expected to remain between 3.6 million and 3.7 million hectares, corn is projected near 1 million hectares, and cotton is holding at about 60,000 hectares in the Chaco.

The Association of Soybean, Oilseed and Cereal Producers of Paraguay opened the campaign symbolically on Sept. 3 in J. Eulogio Estigarribia, Caaguazú. Producers face a climate outlook that could be influenced by El Niño, while production costs remain high.

Soybeans continue to lead the sector. The previous campaign ended with a record 12.5 million tonnes and generated $2.978 billion for Paraguay’s economy. Repeating that performance will be a major challenge. Key inputs are available, including MAP, TSP and SSP fertilizers, but they remain expensive.

International soybean prices have recovered. The November contract in Chicago reached about $465 per tonne at the end of August, supported by Chinese purchases. Local prices have also improved, although producers remain focused on freight and logistics costs.

Corn is finding a broader market. The 2026 second crop reached a record 1.18 million hectares, while StoneX projects about 1 million hectares and 5.73 million tonnes for the 2026-27 regular crop. Demand now comes not only from exports, but also from ethanol and feed production for cattle, poultry and pigs. Domestic consumption could approach 3 million tonnes.

Cotton production in the Chaco could reach 70,000 hectares if enough seed is available. Boquerón and Alto Paraguay are the main producing areas. Cotton exports generated $48.5 million after growing 78%, while prices range from 2,800 to 3,500 guaraníes per kilogram depending on quality, harvest and yield.

El Niño-related rains could improve initial moisture but create risks during harvest and affect fiber quality. Sesame remains heavily export-oriented, with 90% to 95% of production sold abroad. The previous campaign covered about 100,000 hectares and produced an estimated 27,000 to 30,000 tonnes, while export destinations increased from 28 to 34 countries.