The Amazon region of northern Brazil continues to suffer under the worst drought in 120 years, resulting in the lowest water level at the Port of Manaus in 122 years. A state of emergency has been declared in 62 municipalities along the river.
The Amazon River is formed near the city of Manaus when the Negro River joins with the Solimoes River. The Negro River, which is the largest northern tributary to the Amazon, is also at record-low levels. Water levels on the southern tributaries such as the Madeira River and Tapajos River are also record-low, which is impacting grain shipments. Barge operations on the Madeira River have been suspended and barges on the Tapajos River are only being loaded to 60% of capacity.
South American crop consultant Dr. Michael Cordonnier says some grain shipments out of Mato Grosso that were scheduled to go north to the Amazon River have been diverted to the Port of Santos in southeastern Brazil at an additional cost of approximately $21 per metric ton.
