Rising demand in China boosts canola exports

Canada's grains and oilseeds sector, particularly canola, faces potential changes due to record imports from China and ongoing investigation. In August, China imported 796,900 tons of grains, oilseeds, and pulses, including a decade-high 718,000 tons of canola. This surge is attributed to China's effort to increase vegetable oil stocks amid global palm oil market tensions. Despite current high import duties on Chinese goods, Canadian canola exports to China have reached record levels, accounting for the majority of the 1.95 million tons exported in the ninth week of the 2024-2025 crop year. However, the future of these exports is uncertain as China's anti-dumping investigation could lead to increased duties, potentially impacting the marketing year 2025-26.

Canada’s grains and oilseeds sector remains heavily dependent on Chinese exports, as evidenced by an August report from the Canadian Grain Commission. China imported 796,900 tons of grains, oilseeds and pulses during the month, the highest in a decade. Canola accounted for most of this year’s exports, at 718,000 tons. This is China’s best-ever canola exports, which occurred before the Chinese government announced its intention to investigate the importation of canola into its market. The anti-dumping investigation is likely related to Canada’s announcement to increase duties on Chinese electric cars to 100% and a 25% tariff on steel and aluminum imports. China is looking to increase its vegetable oil stocks due to tensions in the global palm oil market. The country typically imports 5 to 5 million tons of palm oil during the crop year, as well as about 2 million tons of rapeseed oil. With palm oil futures trading at near two-year highs, Chinese buyers are looking for alternative ...