Reuters – Protests over Brazil’s election result that blocked roads in Mato Grosso state earlier this month lifted truck freight prices, affecting the operations and margins of global grain traders at a time when farmers are selling their abundant second corn crop.
Truck freight rose 20 per cent (US$9.40) per tonne in Mato Grosso, said Abiove, an industry group representing global firms like Cargill, Bunge, Cofco and Louis Dreyfus Co., on Nov. 24.
The most affected routes are the Sorriso-Miritituba and the Sinop Miritituba to Brazil’s northern ports, Abiove president Andre Nassar said by telephone.
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As a result of the disruption, certain Abiove members expressed concern about failing to honour corn export contracts or facing demurrage costs, Nassar said, adding that some companies loaded less corn than scheduled earlier that week and others saw no material effect on export volumes.
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The blockades and violence displayed by some demonstrators made transportation companies afraid to use local roads, according to Nassar.
Brazil’s federal highway police said all Mato Grosso federal roads were clear as authorities acted to lift blockades that caused long lines of trucks in some places.
Abiove declined to estimate the effect on Brazil corn export volumes in November as a result of the protests. Anec, an association representing grain exporters, projected overall November exports at 6.4 million tonnes.
