Source: Oleoscope (Russia)
Cargill Brazil soybean exports to China have stopped after the Brazilian government introduced changes to inspection regulations. Moreover, these changes make it difficult for traders to comply with the updated requirements, Reuters reported, citing the head of the company’s regional office.
Cargill Brazil Soybean Exports to China: Regulatory Background
As the publication notes, Brazil’s Ministry of Agriculture introduced stricter pest and weed inspections for soybeans shipped to China. Furthermore, this followed a request from the Chinese government. Consequently, not all shipments comply with the updated sanitary certificates.
According to Brazilian soybean market participants, there are currently virtually no trader requests for local soybeans.
Market Impact and China Dependency
China is the largest importer of Brazilian soybeans. Specifically, it purchases approximately 80% of the oilseed exported by the South American country.
Broader Trade Context
Earlier, Beijing reportedly detected traces of GMOs in rapeseed oil from Kazakhstan. Furthermore, China has already blacklisted three Kazakh oil mills that processed rapeseed. Several enterprises have stopped working. Additionally, another 5 enterprises are on the verge of stopping.