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China resumes Brazilian soy imports from five firms

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Suspensions were due to phytosanitary issues

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Move comes ahead of Lula's state visit

(New throughout, adds confirmation from the Brazilian

government)

By Laurie Chen and Ella Cao

BEIJING, May 8 (Reuters) - China, the world's largest

soybean buyer, has lifted restrictions for Brazilian soybean

shipments from five firms previously suspended over

phytosanitary concerns, the Brazilian government confirmed on

Thursday.

Earlier, Reuters reported, citing a source familiar with the

matter and Chinese customs data, that China had resumed imports

from the firms.

"The decision was made after technical understandings

between the health authorities of Brazil and China," Brazil's

Agriculture Ministry said in a statement.

Brazil is the world's largest soybean producer and exporter,

and the top supplier to China as the trade war drives Beijing to

diversify away from the U.S., its second-largest supplier.

The source had said that the resumption of supplies began on

April 25, weeks ahead of a planned state visit to China by

Brazilian President Luiz Inacio Lula da Silva and at a time when

China is trying to marshal a global coalition against the U.S.

trade war.

Reuters reported in January that China had suspended imports

from related entities of Terra Roxa Comercio de Cereais, Olam

Brasil, C.Vale Cooperativa Agroindustrial, Cargill Agricola

S.A., and ADM do Brasil. Global giants like Cargill have many

subsidiaries licensed to export to China.

Brazil said at the time it intended to raise the issue with

Beijing and its agriculture ministry last month provided

officials there with information about the suspended firms.

According to a Chinese customs database, all entities with

the exact names of the five firms currently hold "normal"

registration status.

The database does not specify the resumption date, and

Reuters was unable to verify their prior status.

ADM do Brasil parent Archer-Daniels-Midland Co ( ADM ),

Cargill Inc - the privately-held U.S. grain trading giant and

parent of Cargill Agricola SA - Terra Roxa Comercio de Cereais

and the parent firms of the other two affected companies did not

immediately respond to requests for comment.

China's GACC and the Brazilian Embassy also did not respond

to requests for comment.

China, which purchases more than 60% of globally traded

soybeans, sources over 70% of its imports from Brazil -further

eroding U.S. market share.

In 2024, China imported a record 105.03 million metric tons

of soybeans, with more than 74 million tons coming from Brazil.

Brazil's bumper harvest is expected to bolster China's soybean

imports to a record high in the second quarter.