Main points
- Brazil plans talks with China over complaints about soybean quality and increased controls on agricultural products after weed seeds were discovered.
- Traders are facing document delays, rising costs, and Cargill has temporarily suspended supplies, but export volumes remain significant.
China complains about the quality of soybeans / Photo Pixabay
Brazil is preparing for talks with China after complaints about the quality of its soybeans, with Beijing demanding stricter controls and safety standards.
China is not satisfied with the quality of Brazilian soybeans
The Brazilian government plans to hold talks with China on soybean quality requirements and inspection procedures, Reuters reported. The reason was complaints from Beijing about certain batches of Brazilian soybeans exported to China.
Brazil's Agriculture Minister Carlos Favaro said the country has already tightened controls on agricultural products. He also denied reports that export procedures have been simplified.
According to him, the decision was made after weed seeds were found in some soybean shipments. From now on, only those cargoes that fully meet China's requirements will receive certificates, and without this, the ships will not be able to set sail.
Please note: Brazil plans to send a delegation of agricultural officials to China to resolve the situation. They are expected to agree on a joint sanitary protocol to maintain access to a key market and minimize risks for exporters.
The tightening of controls has already had an impact on the market, with traders reporting delays in paperwork, rising costs and ship downtime in ports. In particular, Cargill has temporarily suspended shipments of Brazilian soybeans to China.
Important! Despite this, export volumes remain significant. According to estimates by the exporters association Anec, Brazil could deliver about 16.32 million tons of soybeans in March, which is only slightly less than previous forecasts and indicates stable demand from China.
Soybeans are falling in price on world markets amid delays in US-China talks
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Global soybean prices have fallen due to the postponement of trade talks between the US and China, as well as lower oil prices.
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President Trump announced the postponement of his meeting with Xi Jinping due to geopolitical circumstances, which negatively affected the soybean market.