SAO PAULO, January 30, 2021
Shipping schedules for Brazilian ports show soybean exports of some 8.5 million tonnes in February, a potential record for the month, but getting all that to port will be tough for trading firms grappling with harvesting delays and a potential trucker strike.
In fact, some associations representing independent truckers and logistics workers have called for a strike to protest higher diesel prices, starting on Monday, which could hamper soy deliveries to key ports like Santos and Paranaguá.
February will be very tumultuous, not only in terms of port commitments, but also in terms of available trucks with most truckers will still be in Mato Grosso state hauling the late soy.
Through Jan. 21, Brazil, indeed, had harvested just 0.7% of its new soybean area, compared with 4.2% the year before.
As a result, exports of the oilseeds from the world’s largest producer and exporter fell by 86% in January from a year ago.
While worrisome for Brazilians, of this situation is benefiting the country’s biggest soybean rival, the United States, which buyers sought in January amid a shortage in Brazil.
However, this late harvesting, could be generate more problems.
Loading all the ships next month, could be very hard amid harvesting delays, in adding that, schedules may not reflect actual export volumes program.
Regarding the truckers’ strike, this is a concern, but at the movement seems to lack the support in had in 2018, when a nationwide trucker stoppage nearly paralyzed Latin American’s largest economy for 11 days.
Harvesting time is when they get paid the best values for freight, so we may hope in a solution.
Source: Reuters
