Rising Canadian rapeseed imports put pressure on rapeseed oil prices in China

Domestic rapeseed oil prices in China declined significantly in early November 2026 amid expectations of increased rapeseed imports and weak demand from processing and food companies. According to SunSirs, the average market price of rapeseed oil fell by 3.91% between November 2 and 9, from 10,750 to 10,330 yuan/ton. Prices are facing additional pressure from the prospect of increased domestic oilseed crushing and declining international rapeseed prices.

One of the main factors behind the price decline is the expected arrival of substantial volumes of new-crop Canadian rapeseed. Increased raw material supplies to Chinese oilseed crushing plants are creating conditions for higher processing volumes and rapeseed oil production. Meanwhile, the previous price support provided by limited inventories of finished products is gradually weakening. Market participants expect growing supplies to continue limiting price gains in the near term.

Weak purchasing activity among consumers is adding further pressure. Demand for rapeseed oil remains limited, with companies mainly buying enough to cover their immediate needs. As rapeseed oil remains relatively expensive compared with other edible oils, buyers are increasingly turning to cheaper alternatives, particularly soybean oil and palm oil. This is limiting a recovery in consumption and preventing domestic prices from finding sufficient support.

Meanwhile, declining international rapeseed prices are weakening cost-side support for China’s rapeseed oil market. Cheaper imported raw materials allow crushers to make purchases at more favorable prices but also reinforce expectations of further declines in finished product prices. Amid weak demand and prospects for increased crushing activity, market participants remain reluctant to build additional oil inventories.

SunSirs analysts expect China’s rapeseed oil market to remain under pressure in the near term, with continued price volatility. Further arrivals of imported rapeseed and increased oil production are likely to limit the potential for a price recovery. Market stabilization would require stronger purchasing activity and a narrowing of the price gap between rapeseed, soybean and palm oils. Without these factors, a significant increase in rapeseed oil prices appears unlikely in the near term.

Tags: China, rapeseed, rapeseed oil