Chinese importers finalize agreements to purchase 10 shipments of Canadian canola

On January 27, two trade sources told Reuters that Chinese importers had finalized agreements to purchase up to 10 shipments of Canadian canola following Canadian Prime Minister Mark Carney’s visit to China earlier this month. This move is expected to help ease tight market supply.

According to the two traders with direct knowledge of the deals, the canola is expected to ship between February and April, with each shipment carrying approximately 65,000 tons. The report states that the 10 shipments, totaling approximately 650,000 tons of canola, represent more than 10% of China’s total canola imports for 2024.

“It’s easy to get Canadian canola into the Chinese market now; crushing plants have already pre-ordered these shipments,” said a source working for an international agricultural company.

During Carney’s visit to China, the two countries reached a preliminary trade agreement: China will reduce tariffs on Canadian canola, and in exchange, Canada will reduce tariffs on Chinese electric vehicles.

Rapeseed (also known as canola seed) can be pressed to produce edible oil and other products, while the high-protein rapeseed meal left after pressing is widely used as livestock feed.

On January 22, in response to the trade agreement reached between China and Canada on the rapeseed issue, He Yongqian, spokesperson for the Ministry of Commerce, stated that China will fully consider Canada’s reasonable demands within the framework of rules and make a final ruling based on facts and evidence.