The news: China is making efforts to reopen rapeseed trade with Australia after a five-year hiatus, as it seeks to secure supplies of a key animal feed ingredient as ties with supplier Canada sour, according to sources cited by Bloomberg.
The context: Last week, Chinese agriculture trader Cofco made inquiries with major exporters in Australia on prices and to settle specific terms to book the new rapeseed crop expected in October. Bloomberg added that the state-owned trading giant accelerated its efforts to secure supplies from Australia after Beijing’s decision to impose a temporary duty of 75.8% on shipments from Canada following an anti-dumping probe.
Australia and China are yet to agree on phytosanitary issues, over which China shut Australian canola out of its market since 2020, but Beijing has reportedly agreed in principle to attain some trial cargoes from Australia. Australia is the world’s second largest canola exporter.
“This is an active and ongoing government to government discussion and details have not yet been finalised,” a spokesperson for the Australian Department of Agriculture told Bloomberg.