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Drought affecting Argentine grains exports

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A ‘once-in-a-century drought made the water level of Argentina’s main grains transport river so low that farm exports have been reduced. Logistics costs have increased, caused by a trend that meteorologists said will probably continue into next year.

The South American exporter is the world’s No. 3 corn supplier and No. 1 exporter of soymeal livestock feed which is used to fatten pigs and poultry from Europe to Southeast Asia. Farm exports are the main source of hard currency. This is needed for increasing central bank reserves which have been depleted by a three-year recession.

Southern Brazil, the location of the source of the Parana River, has suffered a three years drought. This water levels in the Argentine ports hub of Rosario, Santa Fe province, has been reduced. About 80% of the country’s agricultural exports are loaded there.