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Drought blocks shipping in another grains corridor in northern Brazil

Brazilian port terminal group Amport stated on Thursday that grains carry through the Tapajos waterway has come to a stop as a serious drought hit northern Brazil and lowered the river's water levels.

WHY IT'S IMPORTANT

Tapajos, which connects Brazil's main and north regions, is a crucial passage to carry grains from farming heartlands in states, including Mato Grosso, Brazil's leading soy manufacturer, to ports in the Amazon area.

SECRET QUOTES

Amport, which represents companies such as Cargill and Louis Dreyfus, told Reuters that navigation of barge convoys bring grains in the Tapajos has been halted given that last Friday, and is anticipated to resume in November if forecast rains come.

Companies are waiting on the river to increase by a minimum of 20 centimeters (7.9 inches) to navigate securely, Amport said in a. declaration.

EXTRA CONTEXT

The drought had already halted shipping of grains through. the Madeira river, another important grains passage, in. September.

The head of local grains traders lobby Anec, Sergio Mendes,. stated on Thursday that these logistical concerns did not effect. export volumes, given that the firms had actually been already prepared for. the scenario by delivering some grains to ports in southern. Brazil.

(source: Reuters)