A severe drought in Brazil has brought grain transportation to a standstill on the Madeira River, a vital northern waterway connecting major agricultural regions to the nation's ports. The Amport association for regional port terminals confirmed the halt on Wednesday. The Madeira River serves as a crucial route for shipping products from Rondonia state and parts of Mato Grosso, Brazil's leading soy producer, to export terminals in the northern states. "Grain transportation on the Madeira is currently halted as the river's depth at critical points is around two meters (6.6 ft), making navigation commercially unfeasible," stated Flavio Acatauassu, President of Amport, to Reuters. According to data from the national crop agency Conab, approximately 34% of Brazilian soy exports and nearly 43% of corn exports in 2023 were shipped via the North Arc region, which encompasses ports in northern Brazil. Brazil holds the position of the world's largest soy exporter and is a major corn exporter. However, the shipping disruption may not significantly impact Brazilian exports, as local farmers have already dispatched the majority of their anticipated 2024 grain shipments. The local grains traders lobby, Anec, reported on Wednesday that while the reduced transport capacity through northern ports has increased costs for exporters, companies were already prepared for such scenarios. "There should be no reduction in grain exports due to the drought in the northern region, as traders operate with a very high level of precaution," said Sergio Mendes, General Director of Anec. (Reuters)