Brazil drought dries river and stops shipping on key grains corridor

A widespread drought in Brazil has halted the transport of grains through the Madeira river, an important northern waterway linking key croplands with the country’s ports, regional port terminals association Amport said on Wednesday.

The Madeira riveris a key corridor for shipping products from Rondonia state and partsof Mato Grosso state, Brazil’s top soy producer, to export terminals located in the country’s northern states.

“Grain transportation in the Madeira is currently halted as river’s depth in critical points is around two meters (6.6 ft),making navigation commercially unfeasible,” Amport President Flavio Acatauassu told Reuters.

Some 34% of Brazilian soy exports in 2023, and almost 43% of corn exports were shipped through the so-called North Arc region, which includesports located in northern Brazil, according to data from the national crop agency Conab.

Brazil is the world’s largest exporter of soy, and one of the largest corn exporters.

However, the shipping haltmay not affect Brazilianexports as local farmers have already shipped most of the grains expected for 2024.

Local grains traders lobby Anec said on Wednesday that thelower capacity for transportinggrains through northernports has raised costs for the exporters, but added the companies had been already prepared.

“There should be no reduction in grain exports due to the drought in the northern region, as traders work with a very high level of precaution,” Anec’s General DirectorSergio Mendes said.
Source: Reuters (Reporting by Roberto Samora in Sao Paulo; Writing by Andre Romani)