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Brazil says soy deliveries to China from 5 firms stopped due to contamination

China, the world's greatest soybean buyer, has actually stopped getting Brazilian soybean shipments from five firms after cargoes did not satisfy phytosanitary requirements, according to a statement from the Brazilian federal government validating what Reuters had gained from two sources on Wednesday.

The suspension comes as Brazil has been reinforcing its share of the world's biggest soybean market at the cost of the No. 2 exporter, the United States. The Brazilian farming ministry said the non-conformity. see it received from China's General Administration of. Customs refers to 5 Brazilian business, which the ministry. did not name.

Among the sources informed Reuters that given that Jan. 8 Brazil has. suspended deliveries to China from Terra Roxa Comercio de. Cereais, Olam Brasil and C.Vale Cooperativa Agroindustrial.

On Jan. 14, Chinese custom-mades suspended shipments from Cargill. Agricola SA and ADM do Brasil, that source included.

The parent firms of the affected companies did not. instantly react to ask for remark.

China's GACC did not react to an ask for remark.

When we attempt to process clearance on customs' website for. soybeans delivered by these 5 business, we are unable to. proceed, said a 2nd source, a trader at a China-based. soybean crusher.

The Brazilian farming ministry stated the GACC found. the presence of pesticides and bugs on a routine examination of. freights.

The temporary suspension of the companies' systems was. communicated ahead of time by GACC to the Brazilian side,. showing self-confidence in the Brazilian evaluation system and. the robustness of the work performed by the Brazilian. federal government and exporters, the ministry stated.

The ministry stated Brazil's overall soy exports to China. will not be affected, including it will offer the required. information for China to raise the short-term suspensions.

It was unclear how many freights and volumes were impacted by. the non-conformities, as the Brazilian government did not. provide additional information.

China, which purchases more than 60% of soybeans delivered across. the world, now takes more than 70% of its imports of the oilseed. from Brazil, consuming into U.S. market share.

With concerns of restored Washington-Beijing trade tensions,. China secured nearly all of its soybeans from Brazil for. first-quarter delivery ahead of Donald Trump taking workplace as. president.

It was unclear the length of time the suspension would last,. although traders expected it to be short-term.

It depends generally on how quickly the Brazilian companies. can provide evidence that they found out what was wrong that resulted in. these inconformities and provide a plan to repair that, the very first. source stated.

This can become a huge deal if they do not discover an option. quickly, said a Brazil-based trader on condition of privacy. He. stated the efficiency of port operations is essential to keep. product streaming.

The suspended firms are systems of a few of the greatest. soybean providers to China.

We are taking it seriously, an official at one of the. affected companies told Reuters. He decreased to be called due to. level of sensitivities of the concern.

China imported a record 105 million lots of soybeans in. 2024.

(source: Reuters)