China snaps up Australian canola as improved ties, lower tariffs fuel demand

[BEIJING/SINGAPORE] Chinese oilseed buyers have purchased around 1 million metric tons of Australian canola in recent deals, as improved Beijing-Canberra ties, lower tariffs and stronger processing margins boost demand, three Asia-based traders told Reuters.

The cargoes, for arrival in early 2027, were bought at about US$695 to US$705 per ton, including cost and freight (C&F) to China, said one of the sources with direct knowledge of the deals.

“Attractive crushing margins in both the futures and spot markets for Australian canola prompted the purchases,” said one Beijing-based agricultural broker. The broker and three traders did not want to be identified as they are not authorised to speak to the media.

The purchases mark a further normalisation in China-Australia trade after Beijing began reopening its canola market to Australian supplies around the middle of last year.

Initial imports were limited to trial purchases by state-owned trader COFCO, while private crushers were excluded until Beijing expanded access in July this year.

COFCO’s purchases last year came after Beijing imposed preliminary anti-dumping duties of 75.8 per cent on Canadian canola in August 2025, bringing shipments nearly to a halt. An initial trade deal with Ottawa in January led China to cut its final anti-dumping tariff to 5.9 per cent the next month.

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China now imposes an effective duty of 14.9 per cent on Canadian canola, compared with a standard 9 per cent import tariff on Australian cargoes.

Both state-owned and private buyers made the latest purchases, traders said. Australian canola is cheaper than Canadian supplies because of lower tariffs and freight costs.

China is the world’s biggest importer of canola, which is also called rapeseed. Canada is the world’s biggest canola exporter and Australia is the No. 2 supplier of the oilseed, which is crushed to produce protein-rich meal and oil. REUTERS