Brazil has announced that it wants to drain water from the Itaipu reservoir into the Parana River to raise the water level of the most important waterway for Argentina. This was announced on Saturday by the Foreign Ministry in Buenos Aires.
The Parana level has dropped to its lowest level in this decade and is forcing exporters to only partially utilize their ships with soybeans and other agricultural raw materials, which are mostly destined for China. As a result of the corona crisis, shipments from there are already limited and are currently considered a bottleneck in the worldwide supply of soybeans and soybean meal.
A drought had caused the reservoirs in southern Brazil to hold 17% less water. The supply of electricity to the region by the dam walls is no longer fully guaranteed and is putting additional strain on the local economy in the corona crisis. Brazil is opposed to the decision to give away water so that Argentina, the competitor on the world market, can export more agricultural goods. No consideration was apparently agreed between the two foreign ministers.
Source
Hansa Terminhandel GmbH
