Drought in the northern region of Brazil is impacting the logistics of corn transportation through the northern ports. Due to the low water levels in the Amazon Basin rivers, many buyers are choosing to redirect their shipments to southeastern ports, such as the Port of Santos. Grain transportation to the ports in the Northern Arc has become more expensive as it now needs to be done by trucks, resulting in higher operational costs. The lack of rain in the North may also lead to a reduction in corn export premiums. Despite the logistical challenges, Brazil is expected to achieve record corn export volumes, meeting global demand, although the waiting time for shipments in Santos has recently increased. Rainfall in the northern region is projected to remain below average until January 2024.
Source: Globo Rural / Datamar News