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Brazilian soy shipments halted over potential plant health

issues

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Suspension affects Terra Roxa, Olam, C.Vale, Cargill, ADM,

sources say

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China takes more than 70% of its soybean imports from

Brazil

By Laurie Chen, Mei Mei Chu, Ella Cao, Naveen Thukral and

Ana Mano

BEIJING/SAO PAULO, Jan 22 (Reuters) - China, the world's

biggest soybean buyer, has stopped receiving Brazilian soybean

shipments from five firms after cargoes did not meet plant

health requirements, according to a statement from the Brazilian

government confirming what Reuters had learned from two sources

on Wednesday.

The phytosanitary-related suspension comes as Brazil has

been bolstering its share of the world's biggest soybean market

at the expense of the No. 2 exporter, the United States.

It's also an unexpected twist in the global agricultural

supply chain, as U.S. President Donald J. Trump's threats of

renewed tariffs against Chinese imports have increased

geopolitical tensions between the world's top two economies.

The Brazilian agriculture ministry said the "non-conformity"

notice it received from China's General Administration of

Customs (GACC) refers to five Brazilian companies, which the

ministry did not name.

One of the sources told Reuters that since Jan. 8 Brazil has

suspended shipments to China from Terra Roxa Comercio de

Cereais, Olam Brasil and C.Vale Cooperativa Agroindustrial.

On Jan. 14, Chinese customs suspended shipments from Cargill

Agricola SA and ADM do Brasil, that source added.

Olam, Cargill and ADM together accounted for about 30%

of the more than 73 million metric tons of soybeans shipped from

Brazil to China in 2024, according to data from shipping company

Cargonave Group.

However, Brazil's agriculture ministry said only a small

volume of soybeans were affected and the impact on the country's

exports was minimal.

"The companies' units were suspended, but other units of the

same companies can continue exporting," said Luis Rua, the

Ministry of Agriculture's secretary of commerce and

international relations.

Archer-Daniels-Midland Co ( ADM ), the parent company of

ADM do Brasil, declined to comment. Cargill Inc, the

privately-held U.S. grain trading giant and parent of Cargill

Agricola SA, did not respond to a request for comment.

Juliana Basso de Araújo, owner of Terra Roxa Comercio de

Cereais, declined to comment. The parent firms of the other two

affected companies did not respond to Reuters' requests for

comment.

China's GACC 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 a second source, a trader at a China-based

soybean crusher.

Countries typically require imported or exported

agricultural goods to be inspected to ensure they are free of

pests and diseases, to protect local food supplies.

HOLD-UP COMES AHEAD OF PEAK LOADINGS

Brazilian soybean export shipments remain seasonally

light early in the South American harvest. But loadings are due

to surge over the coming weeks as more of the harvested crop is

moved to market, at which point suspensions could be far more

disruptive, market analysts said.

Some analysts questioned the timing of the suspensions,

so close to Trump's inauguration.

China may want to slow shipments from Brazil to wait for

crush margins to improve after making big purchases or to give

Beijing room to make a trade deal with Washington that could

include purchases of U.S. soy, said Jim Gerlach, president of

U.S. brokerage A/C Trading.

"It could be something to give Xi (Jinping) an

opportunity to buy U.S. beans to put in reserve and get some

goodwill," Gerlach said.

The Brazilian agriculture ministry said the GACC detected

the presence of pesticides and pests on a routine inspection of

cargos.

"The temporary suspension of the companies' units was

communicated in advance by GACC to the Brazilian side,

demonstrating confidence in the Brazilian inspection system and

the robustness of the work carried out by the Brazilian

government and exporters," the ministry said.

The ministry said Brazil's overall soy exports to China

"will not be affected", adding it will provide the needed

information for China to lift the temporary suspensions.

It was unclear how many cargoes and volumes were affected by

the non-conformities, as the Brazilian government did not

provide additional details. It also was not clear how long the

suspension would last, although traders expected it to be

short-term.

China, which buys more than 60% of soybeans shipped across

the world, now takes more than 70% of its imports of the oilseed

from Brazil, eating into U.S. market share.

"We are taking it seriously," an official at one of the

affected companies told Reuters. He declined to be named due to

sensitivities of the issue.

China imported a record 105 million metric tons of soybeans

in 2024.