Brazil faces its worst drought in 91 years, causing the government to issue a drought alert. Late last week, an agency that’s a part of the Brazil Mines and Energy Ministry recommended the country’s water regulator to recognize a state of “water scarcity” after a prolonged drought-hit central and southern parts of the Parana River basin.
Financialpost.com says a weather monitoring agency that’s part of the Agriculture Ministry issued its first “emergency drought alert” for June through September, saying that rains are likely to remain scarce in five Brazilian states during that period.
The lack of rain across Brazil is hurting their agricultural commodities, livestock, and electricity generation as Brazil relies heavily on hydro dams for power. Drier-than-normal weather is especially hard on the second-corn crop, sugar, and coffee. Coffee futures recently hit a four-year high as traders are concerned that drought could even affect the 2022 crop.
As they try to deal with the trouble, the Mines and Energy Ministry announced measures aimed at adjusting water levels that supply the country’s hydro dams to try and prevent power shortages.
