Paraguay is expecting a record soybean harvest, but low water levels in rivers are slowing exports

Paraguay could harvest a record soybean crop this year, but low river levels are delaying supplies and drought in central-west Brazil is affecting water levels downstream.

Water levels in the Paraguay River, the landlocked country's main grain export route, are significantly lower than last year. It is 0.74m near the main grain port of Villetta, compared to 5m at this time last year. Recently it has been close to zero altogether, but recent rains have improved things slightly.

Paraguay is the world's third largest exporter of soybeans and plans to harvest a record 10.4 million tons of oil this year. The largest soybean exporters in the country are Cargill, Viterra and Bunge. Soybean production in the country is recovering after the 2021/22 MR drought, when the harvest was halved.

Paraguay increased soybean exports from 1.6 million tonnes to 2.5 million tonnes in the 1st quarter compared to the same period last year. Paraguay and Parana rivers.

Paraguay delivers grain by barge to the seaports of Argentina and Uruguay, and in the 1st quarter, 80% of all exports were transported by river. A strike by Brazil's MSW workers, who are demanding higher wages, is making it difficult to export by road. Brazil is the main export market for soybeans, which are trucked in from Paraguay.

But car deliveries are very slow, so if the dry weather continues, exports may become more difficult in the coming months.

Meteorologists warn that the rains in the west of Brazil will not last long, so the situation at the mouth of the Paraguay River will remain critical, although it will improve slightly. We will remind that the drought in the Pantanal region has been going on for more than 6 months.