Logistical bottlenecks worrying as soy harvest intensifies

According to information from the Center for Advanced Studies in Applied Economics (Cepea), the soybean harvest is beginning to intensify in Brazil, but logistical difficulties are already worrying.

In addition to truck lines on some national roads – such as those in Itaituba (PA), in the access to the Para port of Miritituba – agents also report a build-up of ships at Brazilian ports. Many soybean farmers are in a hurry to harvest the oilseed in order to be able to fulfill the contracts.

“Tradings, in turn, are attentive to receiving the contracted soybeans on time. Delays in deliveries can limit shipments and result in fines on port loads, ”said Cepea, in a note. With that, logistics for March is already compromised, and most agents show interest in negotiating soybeans with delivery only from the second quarter of this year.

The chart below shows Brazil’s monthly soybean exports since 2017:

Brazilian Soy Exports (HS 1201) | Jan 2017 to Dec 2020 | WTMT

Graph source: DataLiner (To request a DataLiner demo click here)

Source of report: Valor Econômico

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