A WIDESPREAD drought in Brazil has halted the transport of grain through the Madeira River, an important northern waterway linking key croplands with the country's ports, Reuters reports
A WIDESPREAD drought in Brazil has halted the transport of grain through the Madeira River, an important northern waterway linking key croplands with the country's ports, Reuters reports. The Madeira River is a key corridor for shipping products from Rondonia state and parts of Mato Grosso state, Brazil's top soy producer, to export terminals located in the country's northern states.
'Grain transportation on the Madeira is currently halted as river's depth in critical points is around two meters (6.6 ft), making navigation commercially unfeasible,' said Amport president Flavio Acatauassu.
Some 34 per cent of Brazilian soy exports in 2023, and almost 43 per cent of corn exports were shipped through the so-called North Arc region, which includes ports 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 halt may not affect Brazilian exports as local farmers have already shipped most of the grains expected for 2024.
Local grain traders lobby Anec said the lower capacity for transporting grains through northern ports 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 director Sergio Mendes said.
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