Brazilian ports operating normally, agro supply unhindered: port agency

New Delhi — Major Brazilian ports, including Santos and Paranagua, are operating normally as of Thursday, amid the novel coronavirus pandemic and contagion concerns, according to shipping agency Wilson Sons.

The supply of agricultural products from Brazilian ports is flowing as usual, market sources said. The export of the country's primary commodities, including soybeans and beef, are on schedule so far.

Brazilian ports play a vital role in supplying soybeans and beef to Europe and Asia. According to trade department data, Brazil is the world's largest soybean exporter and second-largest commercial beef producer.

Other primary Brazilian agricultural exports are sugarcane, coffee, corn, poultry and tobacco, government data showed.

The Brazilian economy depends heavily on agribusiness exports, including soybeans and their derivatives, as the sector accounts for almost 50% of country's total exports annually.

According to the agency, top Brazilian ports supplying agricultural products, namely Santos, Paranagua, Rio Grande, Belem, Sao Francisco do Sul, Vitoria and Manaus are all operating normally.

However, the ports of Recife, Maceio and Salvador have restricted the docking of cruise ships as a precautionary measure, Wilson Sons said.

So far, port operations are on schedule, said a soybean trader with port operations in Santos. "Tomorrow [Friday] is the important day, to see if they [ports] keep working or not."

According to the sources, a meeting is scheduled between stevedores and government authorities on Friday to sort out differences over precautionary measures and quarantine efforts amid the coronavirus pandemic.

Market participants have adopted a bearish outlook towards South American port operations in coming days, over the severity of COVID-19.

The most active soybean contract traded on Chicago Board of Trade rose 3.6% to reach a high of $8.55/bu from a previous close of $8.25/bu. Currently the contract was seen trading at $8.51/bu as of 12.27 pm CT, Thursday.

The pandemic has so far infected over 500 people in Brazil and killed four. While worldwide, the virus has already infected over 200,000 and claimed 8,700 deaths.