China bars Brazil soy cargo on contamination grounds, Folha reports

SAO PAULO, Nov 26 (Reuters) - China has barred 69,000 metric tons of Brazilian soybeans after finding wheat coated with pesticides in the ship's hold were one cargo was being transported, newspaper Folha de S.Paulo reported on Wednesday citing a letter sent from Chinese to Brazilian authorities at an unspecified date.

According to Folha's report, exports from two Cargill plants as well as others controlled by Louis Dreyfus, CHS Agronegocio and 3Tentos TTEN3.SA will be suspended as of Thursday in connection with the incident.

Approximately ten tons of wheat with pesticides not permitted in the Chinese market were found inside the ship ferrying the soybean cargo, the report said.

Folha said China's General Administration of Customs told Brazilian authorities the event represents a "serious violation" of Chinese food safety standards.

3Tentos declined to comment. The Brazilian agriculture ministry and the other companies did not have an immediate comment.

Luis Rua, foreign trade secretary at the ministry of agriculture, told Folha he had received the communication from Chinese authorities. He sought to minimize the incident.

"We are talking five units out of 2,000 approved for soybean exports to China," he was quoted as saying in Folha. "Brazil has never been on better terms with China. More than 100 million tons of soybeans will be exported this year."