Expanding Iran conflict threatens Brazil grain exports, fertilizer supplies

By Ana Mano and Roberto Samora

SAO PAULO, March 5 (Reuters) - Brazilian farmers whitethorn beryllium squeezed by the escalating struggle successful the Middle East, according to analysts and commercialized information showing the portion is simply a cardinal destination for Brazil's workplace exports and an ‌important supplier of fertilizers specified arsenic urea.

The U.S.-Israeli strikes connected Iran, which has successful crook launched attacks connected different countries successful the ‌region and disrupted maritime postulation done the Strait of Hormuz, whitethorn spark atom declaration cancellations, and fertilizer shortages successful Brazil, which is highly babelike connected imports.

Shippers are weighing whether to unload atom ​cargoes successful Oman to debar occupation successful the Persian Gulf, according to consultancy Argus.

"The alternate would beryllium to cancel [grain] shipments," Argus told Reuters. "It is besides inactive uncertain whether cargoes could beryllium delivered successful Oman and from determination beryllium sent to their last destinations by motortruck oregon rail."

Bulk cargoes specified arsenic maize participate the Middle East done the Strait of Hormuz, said Arthur da Anunciacao Neto, proprietor of shipping bureau Alphamar Agencia Maritima.

The menace to shipping successful progressively unsafe waters has driven up ‌the outgo of maritime insurance, helium said. Ten ⁠ships are acceptable to permission for Iran successful the adjacent fewer days with much than 600,000 tons of Brazilian soybeans and soymeal, according to Alphamar data. Those cargoes, depending connected circumstances, whitethorn beryllium diverted to different destinations, Neto said.

Iran was ⁠the main destination for Brazil's maize exports past year, buying immoderate 9 cardinal tons oregon 20% of shipments. Most of Brazil's maize is shipped successful the second-half of the year.

CREATIVE SHIPPING ROUTES

Middle East fertilizer producers, particularly Iran, are besides important suppliers to Brazilian farmers.

Data from consultancy Agrinvest shows Brazil covered 100% of its urea needs ​with imports ​in 2025. An estimated 41% of those imports, oregon astir 3 cardinal metric tons, ​passed done the Strait of Hormuz earlier reaching Brazil, the ‌data showed.

Francisco Vieira, manager astatine consultancy Agroconsult, said the warfare volition apt restrict urea supplies and rise prices successful the abbreviated term.

"Nothing is expected to travel from Iran," Vieira said. "We bash not adjacent cognize if their factories are being bombarded."

Government information shows Brazil imported 7.7 cardinal tons of urea past year, with shipments from Iran representing little than 2.5% of that.

But Iran's shipments are often routed via Oman owed to U.S. sanctions affecting colony of planetary commercialized with Iranian parties, and backstage estimates suggest Iran is the root of astir 1.3 cardinal to 1.4 cardinal tons of Brazilian yearly imports.