Weather Delays Brazilian Sugar Crop at Port, Impacting Prices

Brazil is the world's biggest exporter of raw sugar, producing 20 percent of the globe's sugarcane crop. The port in Santos is responsible for 70 percent of Brazil's sugar exports.

Aug 2 2010 --- AccuWeather.com reports heavy rainfall at many of Brazil's main shipping ports is preventing the transportation of raw sugar, placing prices at four-month global highs.

According to AccuWeather.com meteorologists, heavy rain beginning earlier in the week in Santos and Paranagua delayed several sugar shipping vessels.

Paranagua, which is located on the southeast coast of Brazil, has experienced tremendous precipitation levels recently. In the last two months, the region has documented 6 to 7 inches more rain than is normal for this time of year. In July alone, Paranagua has had about three times its average rainfall.

Meteorologists expect the wet weather pattern to continue for the next two weeks. There may be a day or two of relief this weekend, but wetter-than-normal conditions will continue. A front in the area will create extended periods of on-and-off steady rain.

Adequate rainfall and favorable weather conditions provided Brazil with an above-average harvest this season. Rainfall earlier in the season was conducive to the growth stages of the crop, but loading and transportation has become inhibited by the rain.

Harvesting will be ongoing through September. In the long term, the croplands that are found farther inland will have more typical drier conditions, which will allow the harvest to go on as usual.

However, the persistent wet weather on the coast will continue to hamper efforts to get sugar out of Brazil.

The vessels are unable to load during rain because sugar must be poured into a hole in the upper deck to containment below. Damp conditions in the lower containment deck can spoil the finished product.

According to Bloomberg, a record 115 vessels were waiting to load 3.53 million metric tons of sugar at Brazil's six main ports Tuesday.

Brazil is the world's biggest exporter of raw sugar, producing 20 percent of the globe's sugarcane crop. The port in Santos is responsible for 70 percent of Brazil's sugar exports.