Connect with us

Hi, what are you looking for?

Editor's Pick

Brazil on drought alert, faces worst dry spell in 91 years

World3 hours ago (May 29, 2021 08:16AM ET)

2/2

(C) Reuters. FILE PHOTO: An aerial view shows a cow standing amongst a dry area at a ranch in the Pantanal, the world’s largest wetland, in Pocone, Mato Grosso state, Brazil, August 28, 2020. Picture taken August 28, 2020. REUTERS/Amanda Perobelli/File Photo

2/2

By Roberto Samora and Ana Mano

SAO PAULO (Reuters) -Brazil’s government agencies warned of droughts this week as the country faces its worst dry spell in 91 years, increasing fears of energy rationing, hitting hydroelectric power generation and agriculture while raising the risk of Amazon (NASDAQ:AMZN) fires.

Late on Thursday, the Electricity Sector Monitoring Committee (CMSE), which is linked to Brazil’s Mines and Energy Ministry, recommended that the water regulator ANA recognize a state of “water scarcity,” after a prolonged drought hit Central and Southern parts of Brazil along the Parana river basin.

Separately, a weather monitoring agency linked to the Agriculture Ministry issued its first “emergency drought alert” for June to September, saying rains are likely to remain scarce in five Brazilian states during that period.

The lack of rain across much of Brazil has negative implications for grain cultivation, livestock and electricity generation, as Brazil relies heavily on hydro dams for its power. The dry weather could lead to severe fires in the Amazon rainforest and Pantanal wetlands, scientists said.

The CMSE said the lack of rain makes it important to relax restrictions on some hydroelectric plants to allow greater energy generation or more storage in certain regions. That will require difficult talks with politicians, the ANA and environmental protection agency Ibama.

“Energy rationing is not envisaged, but if there is no relaxing of restrictions, there is no other way,” said a source with knowledge of the situation.

The Ministry of Mines and Energy said on Friday that it has sought to expand the supply of energy in Brazil, but ruled out carrying out an emergency process for hiring new capacity.

“The current situation is challenging,” it said in a statement, citing lower than usual reservoirs.

“There is no provision for emergency energy contracting,” it added.

Drier-than-normal weather has hurt production of sugar and coffee in Brazil, the world’s largest supplier of those products, pushing up futures prices for the commodities.

Coffee futures touched a 4-1/2 year high on Friday with traders worried that critical soil moisture in Minas Gerais could affect the 2022 coffee crop as well.

The Mines and Energy Ministry said dry conditions will persist in coming months, particularly in the Southeast and Center West regions.

Brazil on drought alert, faces worst dry spell in 91 years

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

World News

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered...

World News

George Soros and Bill Gates are part of a consortium acquiring a British developer of rapid-testing technology, including for Covid-19 and tropical diseases,...

Tech

If you parked your car in one of the thousands of parking spots across Calgary, there’s a good chance you paid the Calgary Parking...

Investing

ForexMay 27, 2021 02:04AM ET (C) Reuters. By Peter Nurse Investing.com — The dollar edged higher in early European trade Thursday, finding support from...

Disclaimer: Yourmorningvoice.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. Copyright © 2021 Your Morning Voice. All Rights Reserved