Sources in the trade said that a Chinese 'importer' bought a cargo Canadian canola soon after Canadian Prime Minister Mark Carney visited Beijing last week. This could boost prospects for Canadian farmers, and undercut sales of rival supplier Australia.

Two traders who have direct knowledge of this deal said that the Panamax cargo, which contains about 60,000 metric tonnes of Canadian canola, is the first cargo since China stopped imports of canola in October. It is expected to ship after March. On Monday, two traders with direct knowledge of the deal said that it was expected to be shipped after March.

Carney stated that Canada expects China will reduce tariffs on Canadian Canola Seed to a combined rate of 15% by March 1, from the current 84%, as part of a first trade agreement which also reduces tariffs for?Chinese Electric Vehicles.

China's Commerce Ministry said that Beijing would adjust anti-dumping on Canadian Rapeseed later in the day, without providing any further details.

After the visit of the Canadian Prime Minister, a lower duty on Canadian Canola is almost done. One oilseed trader from an international trading company said that it makes sense to purchase now.

Australia was hoping to boost oilseed exports, and COFCO had bought about 500,000 tonnes of Australian canola over the past few months.

China has resumed its purchases of Australian canola after it imposed antidumping duties on Canada. This was the first time in five years that China had done so, and followed biosecurity restrictions which halted trade in 2020.

On Monday, Zhengzhou Rapeseed Meal?futures dropped 2.4% and reached a new low of more than a year on the hope that supplies would increase.

CHINA'S CANADIAN CANOLA IMPORTS COLLAPSE

China is conducting an antidumping investigation into Canadian canola and in August, imposed preliminary duty of 75.8%. This effectively stopped shipments due to a larger diplomatic and trade dispute.

According to MySteel, the halt of Canadian canola shipments in China has caused the industry to come to a halt for at least the last two years.

MySteel reported that the monthly Chinese canola exports have dropped to zero for the first two decades.

Beijing is expected to issue a final decision in its antidumping investigation into Canadian canola by March 9.

Canola or Rapeseed is crushed into cooking oil and other products. The residue of the crushing process, which is a protein-rich meal, is used to feed livestock. Reporting by Ella Cao from Beijing and Naveen Thkral from Singapore; editing by Topra Chopra and Jan Harvey

(source: Reuters)