Itau BBA targets 10% growth in Brazil's agribusiness as Iran war increases costs and biofuel demand

Itau BBA's agribusiness manager Pedro Fernandes said that the Iran War will increase fuel and fertilizer prices, while also increasing 'biofuel demand.

Fernandes stated that despite the tighter margins, which reduced grain producers' appetite for investment, the portfolio will grow. * The conflict's higher oil prices could increase ethanol consumption.

He said that the Iran war would have a greater impact on the planning of the 2026/27 crop and increase costs for fuels and fertilizers.

He added that sugar and ethanol producers are in a strong financial position despite the low price of sugar. They have capitalized on a period when margins were high and are able to continue investing in cane fields renewal.

Fernandes said that the ethanol price prospects for 2026/27 are better than two months ago.

* The 'bank also sees a strong performance in the cattle ranching sector, where beef prices are near record highs due to Chinese demands, as well as in the coffee and cotton industries.

The executive said that the delinquency rate on loan payments is expected to stay stable or decline from early April to late May. This period of time is critical for payment.

(source: Reuters)