Most Port Terminals Run Out of Soybeans: Brazil Strike Update

(Bloomberg) -- Brazil’s trucker strike entered the ninth straight day amid signs that the protests may be shrinking.

While there’s no official data yet on the number of the blockades across the country on Tuesday, industry reports indicated that many were halted after the government signed decrees meeting trucker demands. Local media said protests persist in several states.

Brazil terminals run out of soybeans (12:19 p.m.)

Most export terminals ran out of soybeans for shipments scheduled for Tuesday and Wednesday, Lucas Trindade de Brito, manager at export group Anec, said in a telephone interview.

Grain-truck traffic resumed slowly on Tuesday, though new supplies haven’t arrived yet to export terminals.

Political protests prevent end of strike (noon)

Protests are becoming politically motivated as truckers return to work after the government met their demands, Brazil Chief of Staff Eliseu Padilha said at a press conference in Brasilia.

Earlier, Jose da Fonseca Lopes, head of the largest trucker union, said the strike continues because of the interest of “people who want to overthrow the government.”

Vale output cut inevitable if strike persists (11:24 a.m.)

Strike impact for the time being is limited, Vale CEO Fabio Schvartsman says at an event in Sao Paulo.

Dow halts plants, limits deliveries (11:21 a.m.)

Amid strike impact, Dow still expects to expand in Brazil many basis points above GDP and will continue spending in Brazil, Fabian Gil, the CEO for Latin America, says at an event in Sao Paulo.

Beef output almost completely halted (11:16 a.m.)

Among Brazil’s 109 beef plants, 107 suspended operations and two are running below 50% of capacity, exporter group Abiec said in an email.

Exports of 40,000 tons of beef haven’t been shipped as planned, and thousands of trucks loaded with perishable products, including boned meat, are halted on roads.

Truck flow to main export terminals still halted (10:15 a.m.)

Ports at Santos, the main source for grain exports, and Paranagua, the second-largest, haven’t received any cargoes by truck on Tuesday, according to authorities for both terminals.

Truck grain transportation resumes slowly: Abiove (10 a.m.)

Soybean and soybean-meal transportation slowly returned to normal in some parts of the country, Daniel Furlan Amaral, a manager at industry group Abiove, said in a telephone interview.

“I believe the situation in all of the country will slowly move to normal in the coming days,” he said.

President defends dialogue with truckers (9:58 a.m.)

Brazil President Michel Temer said that dialogue can’t be mistaken for leniency, defending his administration for taking the first step toward getting the country back on track.

Institutional-crisis concerns emerge with strike (9:10 a.m.)

Strike has increased political instability and economic fallout. In op-eds and stories, newspapers point to a possible institutional crisis amid signs of weakness in the government and highlight emergence of voices among truckers calling for military intervention.

Senate approves plan for diesel tax exemption bill (6:08 a.m.)

Under the so-called urgency regime, senators approved a lower house bill that exempt PIS and Cofins contributions on diesel until the end of the year, according to parliamentary news agency Senado Noticias.

©2018 Bloomberg L.P.