China completely stopped importing canola from Canada

2019-03-25 12:09:31
Machine translation
China completely stopped importing canola from Canada

the Tension in political relations between China and Canada will lead to a redistribution of the world market of rapeseed in the current season, as it happened with the soybean market last year.

 

currently, the Chinese importers have stopped signing contracts for the supply of canadian canola, and recently, without a Declaration of reasons was revoked the registration of a canadian company Richardson International ltd's, that should put canola. Such decision associated with complex relations between China and Canada, which worsened after the arrest, canadian law enforcement authorities in December 2018 CFO Huawe man, Banjo at the request of the United States for extradition on charges of fraud.

 

Canada exported to China 40% of total exports of canola. In 2018, China acquired a canadian canola at 2.7 billion dollars.

 

prices of canola in Chicago continue to decline, and Friday fell from 468 to 449,8 CAD/t or 335 $/t, which was at least the last 3 years.

 

the Closure of the Chinese market and the collapse in the price of canola will force canadian farmers to reduce acreage Canalou this season, while earlier it was expecting an increase due to the reduction of the area under legumes. Recall that last year, India has significantly raised the import duty on pulses, which have reduced exports from Canada and reduced prices.

 

On Friday, Euronext may rapeseed futures fell by 1.75 €/t to 357,75 €/t 404 or $/ton, and August is 1.25 €/t to 360,75 €/t or 407,7 $/ton, although after a drop in early March to its lowest for the year level 351,5 €/t all this time the price is gradually growing. In EU prices for canola supports the reduction of own production due to decrease in acreage and a slight increase in prices of oilseeds.

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