China increases rapeseed purchases from Australia amid lower tariffs and favorable crushing margins

Chinese importers have purchased around 1 mln tons of Australian rapeseed amid improving trade relations between Beijing and Canberra, lower import tariffs, and stronger crushing margins. Chinese state-owned and private companies have booked 15 Panamax cargoes for delivery in early 2027. Australian rapeseed was priced at approximately $695–705/t C&F China.

The main driver behind the surge in purchases has been attractive crushing margins for Australian rapeseed in both spot and futures markets. Chinese crushers are increasing imports of raw materials for rapeseed oil and meal production, taking advantage of more favorable pricing conditions. Australian supplies also benefit from lower transportation costs compared with shipments from Canada, which traditionally remains the world’s largest canola exporter.

The expansion of purchases has been made possible by the gradual resumption of rapeseed trade between China and Australia. China began reopening its market to Australian supplies around mid-2025, although imports were initially limited to trial shipments by state-owned company COFCO. In July 2026, Chinese authorities also allowed private crushing companies to purchase Australian rapeseed, significantly expanding the pool of potential buyers.

Differences in import tariffs have played an important role in reshaping trade flows. China’s effective tariff on Canadian canola currently stands at 14.9%, while Australian rapeseed is subject to the standard rate of 9%. In August 2025, Beijing imposed preliminary anti-dumping duties of 75.8% on Canadian canola, effectively halting shipments. Following trade agreements with Canada, the anti-dumping rate was reduced to 5.9% in February 2026. However, Australian rapeseed has maintained its price advantage due to lower tariffs and logistics costs.

China remains the world’s largest rapeseed importer, making changes in its purchasing patterns highly influential for international oilseed trade. Australia, the world’s second-largest canola exporter after Canada, is gaining additional opportunities to expand shipments to the Chinese market. The increase in purchases for delivery in early 2027 highlights intensifying competition among major rapeseed exporters, with trade tariffs, logistics costs, and crushing profitability playing an increasingly important role.

Tags: Australia, China, oilseeds, rapeseed