The Madeira River in Brazil has fallen to a level that is impeding transport from crop production areas to port terminals.  This situation is reminiscent of the 2022 low water levels on the Mississippi that resulted in escalation of inland freight on barges from the Midwest to New Orleans.  The Madeira River and tributaries are responsible for the transport of 34 percent of soybeans and 43 percent of corn produced in northern Brazil.

Notwithstanding the present problems, Anec, a lobby representing grain traders believes that there will be no reduction in exports from the northern region although costs will be higher.  This situation will probably serve the interests of U.S. farmers and exporters since the U.S. will be more competitive.  This is a desirable situation given the anticipated large 2024 harvest and with prevailing high production costs.