Paraguay is poised for a record soybean harvest, but exporters are facing concerns over low river levels that are impeding shipments along the crucial Paraguay-Paraná waterway. A drought in central-west Brazil has led to reduced water levels downstream, particularly impacting the Paraguay River, the primary channel for the landlocked country’s grains exports.
Industry sources and river level data analysis have revealed that the Paraguay River is significantly shallower compared to the same period last year, affecting the transportation of grains via barges downstream. Despite the challenges posed by low river levels, Paraguay is nearing the completion of its soybean harvest, with a forecasted record production of 10.4 million tons. Leading soybean exporters in the country include Cargill, Viterra, and Bunge.
Sonia Tomassone, foreign trade adviser at the Paraguayan Chamber of Oilseed and Cereal Exporters (CAPECO), highlighted the impact of low river levels on the transportation process, emphasizing that reduced barge capacity has slowed down the overall export process. However, she noted that the overall outlook remains positive, given the robust production. This is particularly significant as farmers are still recovering from a drought-affected harvest in the 2021/22 season, which resulted in a production decline of over half.
The water level of the Paraguay River near the key grains port of Villeta currently stands at 0.74 meters, a substantial decrease from over 5 meters at the same time last year. While recent rainfall has contributed to an increase in water levels from near-zero levels, the situation remains critical.