Brazilian soy lots fall outside of Chinese specs

Market: Agriculture
22/01/25

Chinese authorities temporarily banned Brazilian soybean imports from specific company units after finding "unauthorized components" in their shipments, Brazil's agriculture and livestock ministry Mapa said today.

China's general administration of customs (GACC) notified Brazilian authorities about unauthorized components identified in soybean shipments from five companies, but none were fully banned from exporting to the Asian country.

The Brazilian government clarified that unauthorized components were identified in cargoes belonging to one unit each from the five companies. The five units are temporarily banned from shipping cargoes to China, while investigations continue, Mapa said. The Brazilian government did not disclose the companies' names.

Other units of the firms are still authorized to export to China. Sources from one of the affected trading companies confirmed the temporary ban toArgus, highlighting that traces of plant diseases and unauthorized pesticides were identified in the cargoes. This company's legal team is overseeing the matter, the sources told Argus.

It is common for Chinese customs to inspect each cargo that arrives in its ports, with Chinese and Brazilian authorities exchanging information on the results directly.

Some market participants said that this case may lead to a stricter inspection and clearance process for soybeans, while others are confident that the temporary ban and investigation are only routine.

China is the world's largest soybean importer, receiving at least 60pc of the global soybean imports each year, according to the US Department of Agriculture. Brazil accounts for the largest share of imported volumes, while Chinese buyers receive most of the country's oilseed exports. Brazil's national association of cereal exporters Anec estimates that China received 76pc of the 97.3mn metric tonnes the South American country exported in 2024.

By Nathalia Giannetti

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