Low Paraná River hinders exports of Argentina’s record wheat sales
Dec, 31, 2019 Posted by Sylvia SchandertWeek 202001
According to Argentina’s Ministry of Agriculture, Livestock and Fisheries (MAGyP), foreign sales of wheat recorded in December 2019 – the beginning of the wheat crop – reached 3.9 million tons, an all-time record.
However, the country is struggling to get the wheat out of the Paraná River, as the river’s depth in parts is currently half of its historical average for December, forcing grain-loading ships at the Gran Rosario terminals to sail only partly full.
The height of the Paraná River in Rosario, according to data from Argentina’s National Water Institute (INA), has been about 1.55 m in recent days. This height is 1.7 m below the normal height for the period. INA’s forecasts for next week are of a small increase, with estimates of 1.65 meters for the coming days.
Although navigating the main channel does not present great difficulties, the current low volume of water makes port maneuvers rather risky. Depending on the daily height of the water, ships may leave Gran Rosario terminals with as much as 40% less cargo than a full ship. This efficiency loss requires important logistical adjustments for exporting companies, increasing their operating costs.
The following chart, with data from Argentina’s National Institute of Statistics and Census Indec, shows the country’s wheat exports from January 2015 to November 2019:
Graph Source: Indec
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