Tidbits, Brazilian Storage Capacity, Weather & El Nino, Rigs Count 6/13/26
- Wright team
- Jun 13
- 4 min read
Tidbits
Red Tape Removed: According to Brazil’s National Supply Company (Conab, a government agency), annual grain production over the past 10 years has grown by an average of nearly 7%, while storage capacity has increased only 2.4%. Currently, Brazil has the capacity to store approximately 60% to 63% of its annual grain production, more than 130 million mts less than needed. That is why their cash prices are so low during harvest; there just is no place to put the grain except to leave it in trucks waiting up to several weeks to unload at the ports.
A newly enacted law in Brazil now makes certification for grain storage warehouses voluntary rather than mandatory, which is expected to expand the number of facilities able to formally operate within the Conab network of accredited private warehouses.
Conab said nearly 83% of Brazilian warehouses that are not accredited will have the opportunity to become formally authorized to store agricultural products. Before the change, Conab could only use certified storage units, which was a small portion of Brazil’s grain warehouse storage. This meant that even where storage infrastructure existed, Conab could not use it because of bureaucratic red tape. The Ministry of Agriculture's strategy is to reduce bureaucracy, stimulate investment, and increase the competitiveness of Brazilian agribusiness.
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