Exclusive Brazilian soybean shipments to China from five companies halted, Reuters sources say
By Laurie Chen, Mei Mei Chu, Ella Cao and Naveen Thukral
BEIJING (Reuters) – China, the world’s biggest buyer of soybeans, has stopped accepting shipments of Brazilian soybeans from five entities after the cargoes failed to meet phytosanitary requirements, two sources with direct knowledge of the matter told Reuters on Wednesday.
The suspension comes as Brazil strengthens its share of the world’s largest soybean market at the expense of the No. 2 exporter United States.
China, which buys more than 60% of soybeans shipped worldwide, now sources more than 70% of its oilseed imports from Brazil, gobbling up US market share.
Concerned about renewed trade tensions between Washington and Beijing, China has secured almost all of its soybeans from Brazil for delivery in the first quarter before Donald Trump takes office as president.
Brazil suspended shipments to China from Terra Roxa Comercio de Cereais, Olam Brasil and C.Vale Cooperativa Agroindustrial as of Jan. 8, one of the sources said.
Chinese customs suspended shipments from Cargill Agricola SA and ADM do Brasil on Jan. 14, the source added.
Concerns arose after chemical contamination, pests or insects were found in some cargoes, sources said.
The parent companies of the affected entities did not immediately respond to requests for comment.
China’s General Administration of Customs did not respond to a request for comment.
“When we try to process customs clearance on the customs website for soybeans supplied by these five companies, we are unable to proceed,” said another source, a trader at a China-based soybean crusher.
It is not clear how long the suspension will last, although traders expected it to be short-term.
“It depends mainly on how quickly the Brazilian companies can provide proof that they discovered what was wrong that led to these non-conformities and provide a plan to fix it,” the first source said.
The suspended companies are units of some of China’s largest soybean suppliers.
“We take it seriously,” an official from one of the affected companies told Reuters. He declined to be named because of the sensitivity of the issue.
In 2024, China imported a record 105 million tons of soybeans.
