The Brazilian federal government has initiated a R$1.335 billion plan to mitigate the potential effects of El Niño, with the single largest allocation—R$850 million—earmarked for the acquisition of 490,000 metric tons of essential grains to replenish public stocks. The direct market intervention, announced by the government today, is a defensive move intended to secure domestic food supply chains and hedge against severe crop losses anticipated during the second half of 2026 as the El Niño climate pattern intensifies. The government will purchase 310,000 tons of rice and 180,000 tons of corn, effectively signaling the administration’s heightened concern over the impact of extreme weather on *Brazil agribusiness* output and subsequent inflation risk.