Drought blocks shipping in another grains corridor in northern Brazil

By Roberto Samora

SAO PAULO (Reuters) - Brazilian port terminal group Amport said on Thursday that grains transport through the Tapajos waterway has come to a halt as a severe drought hit northern Brazil and lowered the river's water levels.

WHY IT'S IMPORTANT

Tapajos, which links Brazil's central and north regions, is a key corridor to transport grains from agricultural heartlands in states, including Mato Grosso, Brazil's top soy producer, to ports in the Amazon region.

KEY QUOTES

Amport, which represents firms such as Cargill and Louis Dreyfus, told Reuters that navigation of barge convoys carrying grains in the Tapajos has been halted since last Friday, and is expected to resume in November if forecast rains come.

"Companies are waiting for the river to rise by at least 20 centimeters (7.9 inches) to navigate safely," Amport said in a statement.

ADDITIONAL CONTEXT

The drought had already halted shipping of grains through the Madeira river, another important grains corridor, in September.

The head of local grains traders lobby Anec, Sergio Mendes, said on Thursday that these logistical issues did not impact export volumes, since the firms had been already prepared for the scenario by shipping some grains to ports in southern Brazil.

(Reporting by Roberto Samora in Sao Paulo; Writing by Andre Romani; Editing by Aurora Ellis)