How is Brazil's drought impacting global commodity markets?   

Frank Lucas
@Frank.Lucas · Posted 30 Sep. 2021

Kelly Jackson
@Kelly.Jackson · Updated 30 Sep. 2021

The recent news from Brazil’s government firm confirms that the extended dry circumstances have resulted in the current position in central and southern Brazil- the worst drought. Correspondingly, it also has a remarkable role in crop loss, and water scarcity, Pantanal wetlands, and expansion of fire in the Amazon forest. Also, the low water levels in the crucial rivers will disturb cargo ship traffic in the basin. In turn, all these components will make the transportation of goods more costly.

Drought news and heavy frost in Brazil are the worst so far in the last few days. Apparently, it has a direct impact on agricultural and weather commodities. Major Brazil crops such as coffee, corn, sugarcane, and oranges made a remarkable *****. The current forecasts have predicted that the production of corn highly dropped a hit this year. On the other side, coffee production might drop by 20 to 30% in Sau Paulo. Furthermore, the unusually low rainfall has led to a major throwback on soil moisture and underwater levels which are hampering overall agriculture.

Lily Campbell
@Lily.Campbell · Posted 01 Oct. 2021

Brazil’s beats up with water crisis nearly a century that has impacted the navigation of the river and made the goods transportation increased with the expense in the world’s biggest trader of commodities including soybeans, coffee, and sugar. Tarcisio de Freitas, the minister said the measures to reserve water directly with the generation of power would automatically, disturb the navigation on the waterway, which is suffering the most from a prolonged drought of Brazil’s farmland. All things considered, the significance of Brazil in the global commodities market, impels the prices higher at a global level. In inclusion to the drought, which puts coffee trees under heat stress, the freezing temperatures in July have grown the risks of even low coffee production for 2022-2023 and made prices very high.

Rachael Davis
@Rachael.Davis · Posted 01 Oct. 2021

After facing the worst  Brazil drought in nearly a century followed up by cold temperatures, areas in Brazil’s farming are exposed to adversity as the weather circumstances give the warning to bring up more dry conditions later this year. Brazil production is a leader in the agriculture sector. It is also a leading supplier of commodities like corn, sugar, orange juice, and meat, but this year’s weather disturbance has led to take-off prices internationally for coffee and sugar. A lack of rainfall has made the soils dry across southern and central states, which has led to the demolition of the Amazon rainforest.

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