China continues to purchase Australian repack in large quantities

China’s state-owned trading company COFCO purchased up to nine shipments of Australian canola, each worth 60,000 tonnes, Reuters reported, citing trade sources. The purchases totaled approximately 540,000 tonnes, equivalent to approximately 8% of China’s total canola imports last year.

Beijing is conducting an anti-dumping investigation into Canadian products and imposed preliminary duties of 75.8% in August, effectively halting canola shipments amid a broader diplomatic and trade dispute between the two countries.

China is the world’s largest importer of the oilseed: according to Chinese customs data, the country imported 6.4 million tonnes of the seed last year, worth $3.4 billion, almost all from Canada. The country has been China’s primary supplier for the past several years, and the switch demonstrates that it may be able to find alternative sources of oilseed as trade negotiations between Ottawa and Beijing drag on. However, Australia produces less than Canada and may find it difficult to compete with Canadian volumes, experts say.

Tags: Australia, China, rapeseed