Boats are seen on the shore of the Rio Paraguay (Paraguay River), which flows down to the Parana River, as the lack of rain in Brazil, where the river originates, has brought water levels down, forcing cargo ships to reduce the amount of grains that are loaded for export, in Lambare, Paraguay September 13, 2021. Picture taken September 13, 2021. REUTERS/Cesar Olmedo
By Ana Mano (Reuters) – Soymeal shipments from Brazil’s Paranagua port jumped in September driven by strong demand and a drought that has disrupted a traditional logistics route via Argentina.
In a statement sent to Reuters on Friday, Brazil’s Paranagua port authority said exporters shipped 419,314 tonnes of soymeal last month, a 35% rise from August and almost 33% up from the same month a year ago.
Also Read: Argentina’s Soybean Super-Highway is Drying Up
International prices and demand favored an increase in soymeal exports from Brazil, according to the Paranagua Export Corridor Terminals Association, cited in the statement.
In addition, shipment in Brazil of soymeal brought in from Paraguay has been a factor.
“The neighboring country, which used to transport its soymeal by barge to Argentine ports… had to look for alternatives,” the Paranagua port authority’s statement said. Due to the drought and low water level on the Rio de la Plata basin, those barges cannot sail so the product is being sent by road and shipped from Brazil, the statement added.
Large Brazilian farm cooperatives like Coamo and multinationals including Cargill and Louis Dreyfus shipped soymeal from Paranagua in September, according to the statement.
A forecast 150,000 tonnes of soymeal should arrive from Paraguay to be exported from Paranagua, located in Southern Brazil, by the end of this year, the authority said.
As the drought persists, some 400,000 tonnes of Paraguayan soymeal are expected to arrive and be shipped from Paranagua in 2022, the statement added.
Brazil’s main competitor on international soymeal markets is Argentina.
“The drought on the Rio de la Prata also affected the price of the Argentine product, making it less competitive and opening the market for Brazil,” the statement said.
(Reporting by Ana Mano Editing by Marguerita Choy, Reuters)
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 105,938 members that receive our newsletter.
Have a news tip? Let us know.
By Arathy Somasekhar April 4 (Reuters) – A U.S. appeals court on Thursday upheld federal approval of a deepwater oil-export facility planned off the Texas Gulf Coast, saying the proposed Enterprise Products Partners facility...
South Korean ocean carrier HMM has inked a Memorandum of Understanding (MoU) with Shanghai International Port Group (SIPG), China’s largest port operator, on the supply methanol and liquefied natural gas...
By Brendan Murray Mar 31, 2024(Bloomberg) —Ports along the US East Coast are modifying their operations to absorb cargo diverted from Baltimore harbor, where salvage specialists are starting the daunting task...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 105,938 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
