April 9, 2013

Exporters Sending Soy to Port of Rio Grande to Avoid Paranagua

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

With on-going congestion at the Brazilian ports of Paranagua and Santos, some exporters in Brazil are opting to transport soybeans to Brazil's most southern port in the state of Rio Grande do Sul to insure timely exports. Up until this point, 300,000 tons of soybeans from Parana and 100,000 tons of soybeans from Mato Grosso do Sul have bypassed the Port of Paranagua in favor of the port in Rio Grande do Sul. The first vessel loaded with soybeans destined for China left the port in early March and the soybeans needed to fill the vessel were transported in from Parana.

Due to the record large soybean crop in Brazil, port officials at Rio Grande are expecting to export 11 million tons of grain in 2012, which is 2 million more than original estimates. In anticipation of the increased volume of exports, the port increased the amount of truck parking at the port as well as some of the internal roadways at the port.

One of the problems at the port is similar to the other ports in Brazil in that there are only two major highways available to transport soybeans from either the interior of the state or from states further north, BR-158 and BR-392. Both of these highways are currently under construction, which could limit the number of trucks arriving at the port. If that does turn out to be the case, then the export season at the Port of Rio Grande will extend much later in 2013 than in past years.