
As reported by agency Reuters, China has suspended receiving supplies of Brazilian soy exported by five companies. The reason for this decision was to be bad quality of raw material.
Two informants Reuters with direct knowledge of this issue reported, that China since January 8 br. has stopped accepting supplies from Brazil from companies: Terra Roxa Comercio de Cereais, Olam Brasil and C.Vale Cooperativa Agroindustrial, a from 14 January also withheld supplies from Cargill Agricola SA and ADM.
Chinese had to take these decisions in the result of inspections, which had been determined, that in loads of imported soy there are pests, defects, and part of seed is chemically contaminated. Informant confirmed, that attempts to unload soy by official customs parties are blocked against the mentioned five companies.
It is unknown, how long the suspension of deliveries by the Chinese side will last. Brazilian companies will certainly have to present evidence for that they have discovered what went wrong and present a recovery plan. Exporters have to wait for guidance from the Asian customer.
As reported by Reuters, companies whose supplies have
been stopped, are among the leading suppliers soi to China, a Brazil is now a key supplier to China.
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China has transferred to supplies soy from Brazil instead of from the