China, the largest global importer of soybeans, has halted the receipt of Brazilian soybean shipments from five suppliers due to failure to meet phytosanitary standards, as per sources familiar with the matter. Beginning on Jan. 8, exports to China from Terra Roxa Comercio de Cereais, Olam Brasil, and C.Vale Cooperativa Agroindustrial were suspended, while on Jan. 14, shipments from Cargill Agricola S A and ADM do Brasil were also blocked by Chinese customs.
Concerns arose over chemical contamination, pests, or insects found in some shipments. The companies' parent organizations did not respond immediately to comment requests, and China's General Administration of Customs remains silent on the issue.
A Chinese soybean trader stated, "When we try to process clearance on customs' website for soybeans shipped by these five companies, we are not able to proceed." The duration of the suspension remains uncertain, with traders anticipating a short-term impact.
The situation's resolution hinges on the prompt identification and rectification of the non-compliance issues by the Brazilian companies. China, which accounts for more than 60% of global soybean imports, predominantly sources from Brazil.