Two traders with direct knowledge of the transaction said that a Chinese importer purchased a Panamax cargo of 60,000 metric tonnes of Canadian canola soon after Prime Minister Mark Carney visited Beijing last week.

According to traders, the cargo is the first shipment since China stopped imports in October. It will be delivered after March.

Carney stated that Canada expects China will reduce?tariffs for Canadian canola seeds to a combined rate around 15% by March 1, as part of a first trade agreement which also lowers 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 PM, a lower?duty rate on Canadian canola was almost done. One oilseed trader from an international trading firm said that it makes sense to purchase now.

China is conducting an antidumping investigation into Canadian canola. In August, it imposed preliminary duties at 75.8%. This effectively stopped shipments as a result of a larger diplomatic and trade dispute.

According to MySteel, the halt of Canadian canola shipments in China has caused the industry's massive canola crushing to come to a halt for at least 2015, if not earlier.

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

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

Canola or rapeseed is crushed into cooking oil and other products. The leftover 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)