Canada significantly increased canola exports to China after normalization of relations between the countries

In March, Canada increased canola exports to a 17-month high of 1 million tons, of which 369,000 tons were sent to China, which was the highest figure for this direction in the last 11 months, Oil World reports.

Overall, in the first quarter of 2026, the country increased its canola exports by 10% compared to the same period last year to 2.6 million tons. In April, 0.9-1 million tons of canola were exported, most of which was also purchased by China. As part of the trade agreement concluded between the countries, China significantly reduced duty-free imports of Canadian canola in early March, which allowed for increased supplies.

Before the trade agreement with China, Canadian exporters of canola, canola oil and meal were forced to increase sales by reducing prices, as a result of which, during January-March 2026, canola supplies to the EU increased by 40% compared to the corresponding period of the previous season to a record 660 thousand tons. Canada also significantly increased exports to Japan, Pakistan, and the UAE. However, now the blockade of the Strait of Hormuz is negatively affecting canola imports to the UAE, its processing and rapeseed oil exports.

July canola futures on the Winnipeg exchange rose 5% to CAD 754/t or $ 550/t in a month, and November futures rose 5.6% to CAD 758/t amid delays in planting the new crop and forecasts of a lower harvest in the new season.

But the main factor behind the increase in canola prices remains the increase in oil prices, which remain at a high level, which, according to traders, will lead to an increase in prices for all raw materials this year.