By Laurie Chen, Mei Mei Chu, Ella Cao and Naveen Thukral
BEIJING (Reuters) -China, the world’s biggest soybean buyer, has stopped receiving Brazilian soybean shipments from five entities after cargoes did not meet phytosanitary requirements, two sources with direct knowledge of the matter told Reuters on Wednesday.
Brazil, the world’s biggest exporter of the oilseeds, has from Jan. 8 suspended shipments to China from Terra Roxa Comercio de Cereais, Olam Brasil and C.Vale Cooperativa Agroindustrial, one of the sources said.
On Jan. 14, Chinese customs suspended shipments from Cargill Agricola S A and ADM do Brasil, the source added.
There were concerns after some cargoes had been found with chemical contamination, pests or insects, sources said.
The parent firms 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 clearance on customs’ website for soybeans shipped by these five companies, we are not able to proceed,” said the second source, a trader at a China-based soybean crusher.
It was not clear how long the suspension would last, although traders said they expect it to be short-term.
“It depends mainly on how quickly the Brazilian companies can provide proof that they found out what was wrong that led to these inconformities and provide a plan to fix that,” the first source said.
China buys more than 60% of soybeans shipped worldwide. Brazil is its top supplier.
This post is originally published on INVESTING.
