A severe drought in Brazil has disrupted grain transportation through the Madeira River, a vital waterway connecting key agricultural regions to export ports. The regional port terminals association, Amport, reported that river depths at critical points have fallen to around two meters (6.6 feet), rendering navigation commercially unfeasible.
The Madeira River is crucial for shipping grains from Rondonia and parts of Mato Grosso, Brazil’s leading soy-producing state. In 2023, approximately 34% of Brazilian soy exports and nearly 43% of corn exports were transported through the North Arc region, which includes northern Brazilian ports.
Despite the shipping halt, the impact on overall Brazilian exports may be minimal, as local farmers have already dispatched most of their anticipated grain shipments for 2024. Anec, a local grains traders’ lobby, indicated that while the reduced shipping capacity has increased costs for exporters, companies were prepared for such disruptions.
Sergio Mendes, Anec’s General Director, stated, “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.”