Brazilian government confirms that China suspended 5 soybean exporting units

São Paulo (Reuters) – The Brazilian Ministry of Agriculture was notified by Chinese authorities that five soybean exporting units in the country were banned from sending the grain to the Asian country, it was reported on Thursday (27).

On Wednesday, the newspaper Folha de S.Paulo reported that China had prevented 69,000 metric tons of Brazilian soybeans from entering its territory after finding wheat treated with pesticides in the hold of the ship carrying the cargo.

“These are five establishments, among more than 2,000 units authorized to export soybeans to China,” said the ministry, without providing additional details.

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“The Brazilian government, when notified of any possible non-compliance, conducts assessments with transparency, responsibility and agility.”

According to the Folha report, exports from two Cargill factories, as well as three others controlled by Louis Dreyfus, CHS Agronegócio and 3Tentos would be suspended from Thursday in connection with the incident.

Cargill, Louis Dreyfus and CHS Agronegócio did not respond to requests for comment, while 3Tentos declined to comment.

The Ministry of Agriculture said that “Brazil maintains a solid and strategic relationship with China”, adding that this year Brazil will export more than 100 million tons of soybeans to its largest agricultural trading partner.

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