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Heavy rainfall floods Brazil's Rio Grande do Sul

  • Spanish Market: Agriculture
  • 03/05/24

Brazil's southern Rio Grande do Sul state continues to flood after heavy rainfall since 29 April, leading the government to declare an emergency yesterday.

The highest volumes reached the central areas of Rio Grande do Sul, with cities receiving rainfall of 150-500mm (6-20 inches), regional rural agency Emater-RS data show. The monitoring station of Restinga Seca city, in the center of the state, recorded rainfall of about 540mm.

Rainfall in Rio Grande do Sul overall surpassed 135mm in most of the state, according to the US National Oceanic and Atmospheric Administration (NOAA). Meanwhile, dry weather prevailed in other Brazilian regions.

NOAA expects rainfall to abate in the next week, but adverse weather conditions are set to remain.

As of today, 154 sections of 68 highways were totally or partially blocked, according to the state's emergency service.

The 100MW 14 de Julho hydroelectric plant also partially ruptured.

The Rio Grande port has not suspended operations, but handling is slower. Despite the heavy rainfalls, demurrage rates and waiting queues for docking and unloading were not altered. Demurrage rates were stable at $1/metric tonne (t) and the total cost for handling fertilizers remained at $19/t.

But market participants expect the situation to change in the coming days, which may increase demurrage rates. If the rain does not stop and the level of the Guaiba River continues to rise, some areas in the port are likely to flood in the coming days, as is the case in part of the Porto Alegre port.

Amid slower cargo release, logicitical difficulties and the already-low demand for fertilizer transport services, fertilizer freight rates on the Rio Grande-Dourados route, monitored weekly by Argus, fell by R20/t ($4/t), on average, to R225-250/t.

Excessive rainfall to damage 2023-24 soybean crop

Rio Grande do Sul is harvesting its 2023-24 soybean crop, set to be the second largest in the country this season.

Works reached 76pc of the state's expected acreage by 2 May, posting an weekly advancement of 10 percentage points despite the excessive rainfall, according to the rural agency Emater-RS.

Farmers seized shorter windows of more favorable weather — or when rainfall subsided — to intensify field activities, especially in areas expected to register higher yields and that were not deeply affected by a drought earlier in the year.

The moisture levels of grains harvested are considered above average and will require more investment in their drying processes. Some areas reported premature germination and plant decay because of the humidity excess.

Emater-RS maintains the state's average yields estimated at 3,329 kg/hectare, with recent results remaining within prior projections, according to the agency's weekly report released on 2 May. Thus, soybean production in Rio Grande do Sul is still set to reach a record 22.2mn metric tonnes (t).

But market participants agree that forecasts for the state may be revised down in the next weeks, as field surveys begin to accurately assess the excessive rainfall's total damages.


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22/11/24

Blenders credit extension stalled in US Senate

Blenders credit extension stalled in US Senate

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Graphjet launches Malaysian biomass-to-graphite plant


20/11/24
20/11/24

Graphjet launches Malaysian biomass-to-graphite plant

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US, Norway give $110mn to Brazil Amazon Fund


18/11/24
18/11/24

US, Norway give $110mn to Brazil Amazon Fund

Rio de Janeiro, 18 November (Argus) — The US and Norway will contribute a combined $110mn to Brazil's Amazon Fund to reduce emissions from deforestation and promote sustainable forest management. President Joe Biden announced the US' $50mn contribution to the fund from the Amazonian city of Manaus on Sunday. He is the first sitting US president to visit the Amazon rainforest. This adds to the $50mn disbursed by the US to the fund earlier this year, Biden said. Norway will contribute $60mn, citing a 31pc decrease in Amazon deforestation achieved from August 2023-July 2024. "Brazil's success in reducing deforestation is clear proof of the ambitions and determination of the Lula government," Norway's prime minister Jonas Gahr Store said from Rio de Janeiro. President Luiz Inacio Lula da Silva has pledged zero deforestation by 2030. Norway was the first country to contribute to the Amazon Fund, which was set up during Lula's first term in 2008. It was suspended in 2019 during the presidency of Jair Bolsonaro, a climate skeptic, and reinstated when Lula returned to power in 2023. Projects worth a record R882mn ($151.6mn) have been approved so far this year according to Brazil's Bndes development bank, which manages the Fund. By Constance Malleret Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Lower Mississippi draft restrictions lifted


11/11/24
11/11/24

Lower Mississippi draft restrictions lifted

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Biodiesel to drive 2025 palm oil prices: IPOC


08/11/24
08/11/24

Biodiesel to drive 2025 palm oil prices: IPOC

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