China is experiencing a shortage of rapeseed oil, with Chinese importers ordering up to 10 batches of Canadian canola.
China has booked up to 10 cargoes (≈650,000 tonnes) of Canadian canola for Feb–Apr after PM Carney’s Beijing visit, easing supply shortages and potentially displacing Australian shipments. The move follows tentative tariff relief, reshaping China’s rapeseed import flows.
Chinese importers ordered up to 10 cargoes of Canadian canola following Prime Minister Mark Carney’s visit to Beijing earlier this month, two trade sources told Reuters, easing a supply shortage and potentially displacing Australian exports.
According to two traders with direct knowledge of the situation, Canadian canola shipments are expected between February and April. Each shipment is approximately 65,000 metric tons.
The 10 shipments, or about 650,000 metric tons, account for more than 10% of China’s total rapeseed imports in 2024 and about 26% of its total imports last year.
“It’s not difficult to supply Canadian canola to the Chinese market. Processors have already booked these shipments,” said a source at an international agricultural company.
The traders asked not to be identified because they were not authorized to speak publicly on the matter.
During Carney’s visit to Beijing, China and Canada reached a preliminary trade agreement that included lower tariffs on Chinese electric vehicles in exchange for lower levies on Canadian canola.
Rapeseed (canola) is milled to produce vegetable oil and other products. The protein-rich meal left after milling is used as livestock feed.
Last August, China imposed preliminary anti-dumping duties on Canadian canola. It then resumed purchases of Australian canola, which had been suspended after China introduced biosecurity measures that disrupted trade in 2020.
State-owned COFCO has purchased about 500,000 tonnes of Australian canola in recent months, raising hopes among Australian farmers for further purchases, Reuters reports.
Two cargoes of Australian produce arriving in China have yet to be processed, paralysing China’s vast canola processing industry for the first time in years.
“We’re not sure what’s happening with the Australian cargo as the first cargo that arrived in China hasn’t been processed yet,” the source told Reuters.
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Source : Ukr Agro Consult
