| The following GAIN reports were released on March 31, 2026. _______ Australia's cotton production for marketing year (MY) 2026/27 is forecast to increase modestly to 4.9 million bales, up from an estimated 4.65 million bales in MY 2025/26. This is partly driven by the prospect of improved irrigation water availability in northern production regions which is partially offset by reduced water availability in southern areas. Below-average global cotton prices, a strengthening Australian dollar, and the risk of rising input costs are expected to constrain more substantial production growth. Exports in MY 2026/27 are forecast to decline to 4.7 million bales, down 23 percent from an estimated 6.1 million bales in MY 2025/26, which was the third-highest export level on record. The decline largely reflects trade timing dynamics rather than a sharp contraction in underlying production. Brazil's food processing sector revenue reached about USD 248 billion in 2025, growing 8 percent from the previous year. Brazil's strong agricultural base supports ongoing investments in the food processing industry, signaling continued growth to meet rising domestic and regional demand for processed food products. The sector depends on imported high-value micro-ingredients, creating opportunities for U.S. suppliers. Innovative ingredients are highly sought, though novel ingredients require preauthorization. For more information, contact atosaopaulo@usda.gov. India's oilseed sector is expected to continue to shift as rapeseed consolidates its position as the top oilseed for a second year, driven by sustained price advantages over soybeans. Farmers continue diversifying away from soybeans toward more profitable crops such as corn and pulses, reducing overall oilseed acreage. However, the drop in acreage will be offset by the continued adoption of high yielding oilseed varieties, thereby stabilizing production. Poultry and livestock producers are expected to accelerate their shift from traditional soybean meal to cost-effective alternatives as ethanol blending expands supplies of distiller's dried grains and de-oiled rice bran. Edible oil imports are also expected to shift: palm oil is expected to regain market share as prices stabilize, while soybean oil imports are expected to rise on lower prices, and sunflower oil imports will likely fall due to supply constraints and higher prices from key suppliers such as Ukraine. Japan's oilseeds and products markets remain stable. Despite high prices, palm oil imports are consistent based on steady demand. Inflationary pressures eased for a period, encouraging crushers to increase soybean crushing while also maintaining rapeseed processing. However, with vegetable oil prices expected to rise in combination with canola crush margins outperforming soybeans, crushers will prioritize rapeseed over soybean crushing. Increased use of Canadian canola has boosted meal production, creating a meal surplus that may dampen rapeseed imports. Despite ample, global soybean meal availability, Japan will maintain stable soybean import levels as protein supplies are robust. Following earlier fish mortality, feed demand for aquaculture softened in 2025 but expected to recover. With domestic fishmeal output likely to fall, fishmeal imports are expected to rise. Elevated 2025 rice prices reduced soybean plantings, but an anticipated rice price decline should support a 2026 rebound in soybean production. In marketing year (MY) 2026/27, Mexico's oilseed crush, soybean meal imports, and vegetable oil consumption are all forecast to increase, driven by continued growth in demand from the food processing and livestock sectors. Population growth and expanding animal protein production are expected to support higher utilization of both vegetable oils and protein meals. Domestic oilseed production is forecast to remain structurally limited, constrained by farmer prioritization of basic grains, limited financing, and reduced government support policies for oilseed producers. Spain is a major agricultural powerhouse in Europe, ranking as the third largest producer in the EU. It is a critical hub for produce, meat, and processed food, fueled by domestic and imported inputs. In 2025, Spain imported $2.85 billion worth of agricultural, seafood and forest products from the United States, the highest level ever. Spain remains the third largest destination for U.S. agricultural exports in the EU, after Netherlands and Germany. Despite some challenges, including high production costs and economic and political uncertainties, Spain's food and beverage sector continues to maintain positive performance. Looking to the future, with one of the most resilient and competitive food processing industries in Europe, Spain's demand for food ingredients is projected to continue rising, as well as its demand for tree nuts, pulses, distilled spirits, and seafood products. Taiwan's soybean imports are forecast to moderate toward trend levels in 2025/26 and 2026/27 as adequate stocks and stable demand fundamentals support normalized purchasing patterns. Containerized shipments are expected to remain a key competitive advantage for U.S. suppliers, while crushers continue to utilize regional exports of meal and oil as flexible outlets for inventory management. Despite the food waste ban following Taiwan's first African Swine Fever detection, soybean meal demand is forecast to grow modestly as livestock consolidation and improved feed efficiency more than offset operations exiting the industry. Thailand's Food Processing sector grew steadily in 2025, supported by recovery in the tourism sector and demand for health and functional food products. However, the sector is facing headwinds from slower, albeit still growing, domestic purchasing power and potential export contraction. The key trends include increased interest in health foods, dietary supplements, plant-based products, and "future" foods that cater towards fast-paced lifestyles and convenience. Government policies and regional competition will continue to shape Thailand's grain utilization and trade in MY 2026/27. New environmental regulations targeting agricultural burning will directly impact rice and corn production, while the existing import requirements for corn and feed wheat aim to balance feed availability with domestic farmer income protection. Thailand's decision to expand the zero-duty corn import quota for WTO members, which took effect on January 1, 2026, carries implications for corn supply and feed wheat demand. Turkiye's cotton production in marketing year (MY) 2026/27 is forecast to decrease to 525,000 metric tons (MT; 2.41 million bales), based on the assumption that cotton prices will remain stagnant and orders to Turkish ready-to-wear apparel producers will remain low. Cotton farmers were unable to make adequate profits in recent MY's to cover rising input costs. In MY 2026/27, Turkish cotton consumption is expected to be 1.45 million MT (6.66 million bales) like last MY. Cotton imports in MY 2026/27 are forecast to be 980,000 MT (4.5 million bales), with the United States losing its top spot as Turkiye's supplier of cotton as imports shift to Brazil due to lower prices. For more information, or for an archive of all FAS GAIN reports, please visit gain.fas.usda.gov/. | 
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