Sources in the trade said that a Chinese importer purchased a cargo of Canadian Canola soon after Canadian Prime Minister Mark Carney's trip to Beijing. This could boost prospects for Canadian farmers, and undercut sales by Australia, their rival supplier.

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 to arrive since China stopped imports of the crop in October. It is expected to arrive after March.

Carney stated that Canada is expecting China to reduce tariffs on Canadian Canola Seed to a combined rate of around 15% by March 1, from the current 84%, as part of a first trade agreement which also reduces tariffs?on 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 deal to lower duty on Canadian canola was 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 IMPORT COLLAPSE

China is conducting an antidumping investigation into Canadian 'canola' and in August, imposed preliminary duties at 75.8%. This effectively stopped shipments as a result of a larger diplomatic and trade dispute between the two countries.

According to MySteel, the halt of Canadian canola shipments in China has caused the industry to come to a halt for at least 2015

MySteel reported that the monthly Chinese canola imported in October fell to zero for the first time since two decades. Inventories at crushing plants also dropped to zero.

Beijing is expected make a final decision in its antidumping investigation of 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)