Brazil grain exporters re-route some cargos as drought drains Amazonian rivers

By Roberto Samora and Ana Mano

SAO PAULO, Oct 18 (Reuters) - Severe drought in the Amazon is forcing Brazilian grain exporters to divert a small number of export cargos to southern port terminals instead of northern ports, grain exporters group Anec said on Wednesday.

Northern routes, which have been disrupted by difficulties navigating shallow Amazonian rivers this spring, have been instrumental to helping the country boost corn and soybeans exports over the past few years.

Brazil is the world's biggest soybean exporter and expected to overtake the U.S. this year as top corn exporter. China is Brazil's biggest export market for both crops.

Anec, which represents grain traders including ADM, Bunge, Cargill and Cofco, declined to elaborate on which companies are diverting cargo and the volumes involved. Anec's director-general Sergio Mendes noted the volumes are insignificant and he does not see a widespread trend.

The drought, which has limited volumes of grain transported on barges via northern ports in recent days, will not impact Brazilian overall grain exports this year, Anec said.

"This is a mere change (of port)," Mendes said, adding that shipments can divert south to Santos, Latin America's biggest port.

The port of Santos is serviced by a reliable railway that connects it with the heart of Brazil's farm country, the state of Mato Grosso.

Anec is maintaining projections for record 2023 Brazilian soy exports at 99 million metric tons, and record corn exports between 52 million and 53 million tons, Mendes said.

Anec cut this week Brazil's soybean and corn export forecasts for October, however, by around 900,000 tons from a week ago.

Brazil has shipped most of its soy and is the final months of the corn-exporting season.

From January to August, 44% of Brazil's corn exports went through four main northern ports including Barcarena, Itaqui, Itacoatiara and Santarem, according to crop agency Conab, while some 31% of corn shipments from Brazil left through Santos. (Reporting by Ana Mano; Editing by Rod Nickel)