Chinese importers have defaulted on at least 500,000 tons of U.S. and Brazilian soybean cargoes due to negative crush margins and problems in getting credit, two trade sources said.

One source in Beijing said three companies in the province of Shandong had defaulted as they were unable to open letters of credit from banks.

“There are five to six (panamax) cargoes which are unable to be unloaded at ports because buyers can not open LCs (letter of credit) and there are no LCs for an additional 5-6 cargoes floating on the sea,” the source said. Each panamax cargo is for 50,000 to 60,000 tons.

Analysts at state think-tanks said some buyers had had problems getting credit, but did not have further details. (Reuters)