Drought and corn crop failure affect transported volumes; Hidrovias revises goal downward

The sharp drop in the 2021 Brazilian corn crop caused by drought and frost also impacted transported volumes, and logistics companies like Hidrovias do Brasil are revising their forecasts downwards.

Hidrovias, with operations extending from the north to the south of the country, reduced its forecast for transported volume to 11.2 – 13 million tons, compared to the 15.8-16.9 million in the previous forecast.

“The 2021 review is due to an expectation of reduced corn exports in Brazil for the 2021 harvest and an atypical hydrological level that is below average in the southern corridor region,” stated the company.

Brazilian corn production is estimated by state-owned CONAB at 87.7 million tons, down 15.5% from the previous season. The reduced production significantly reduces export expectations and the supply of raw material for feed used by the national meat industry.

The low level of the rivers due to the worst drought in more than 90 years is not only affecting Brazil’s main hydroelectric plants, but it is also impacting navigation.

In the southern corridor, the company operates on the Paraguay-Paraná waterway.

Source: Money Times

To read the full original article, visit the link: https://www.moneytimes.com.br/seca-e-quebra-da-safra-de-milho-afetam-volumes-transportados-hidrovias-reve-meta/

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