According to Anec experts, severe drought in the Amazon region is forcing Brazilian grain exporters to divert a certain amount of export cargo to southern port terminals instead of northern ports, Apkinform reports according to Reuters.
It’s worth noting that northern routes, which were disrupted this spring due to difficulties navigating the shallow Amazon rivers, have helped the country boost corn and soybean exports over the past few years.
Will this situation affect Brazil’s exports?
Anec, which represents grain traders including ADM, Bunge, Cargill and Cofco, declined to specify which companies are diverting shipments and their volumes. Anec CEO Sergio Mendez indicated that volumes are low and he does not see a widespread trend. He also added that the drought, which in recent days has limited the volumes of grain transported by barge through northern ports, will not affect Brazil’s overall grain exports this year.
Anec is also forecasting record exports of soybeans at 99 million tonnes and corn at 52-53 million tonnes in 2023.
Overall, from January to August this year, 44% of Brazil’s corn exports passed through the four main northern ports including Barcarena, Itaqui, Itacoatiara and Santarém, according to Conab, while about 31% of Brazil’s corn cargoes went through the port of Santos.