China purchased about 1 million tons of rapeseed from Australia

Chinese importers have purchased about 1 million tons of rapeseed from Australia for delivery in early 2027 at a price of $695-705/ton C&F (delivered to Chinese ports), Reuters reports.

 

The increase in purchases is facilitated by lower import duties and transportation costs than for Canadian rapeseed, which makes the processing margin higher.

 

These agreements signal a normalization of trade between China and Australia, particularly in agricultural products, primarily rapeseed. China allowed imports of Australian products in mid-2025, but until July 2026, purchases were carried out exclusively by state-owned corporation COFCO. Private importers were granted access to imports only through designated ports and for certain businesses.

 

Both state and private companies participated in the new procurements.

 

Recall that from August 14, 2025, China introduced an anti-dumping rate of 75.8%, which almost stopped supplies from Canada. And on February 28, 2026, it reduced the anti-dumping rate to 5.9%, as a result of which from March 1, 2026, the total import duty on Canadian canola decreased to 14.9%, including the basic tariff of 9%. The anti-dumping rate was introduced for a period of 5 years with the possibility of extension.

 

The 9% import duty on Australian canola makes it more attractive to Chinese buyers than Canadian canola, which has a 14.9% duty. In addition, transportation costs are also lower.

 

In the 2026/27 MY, Australia could harvest a record rapeseed crop, exceeding the previous record of the 2022/23 season (7.6 million tons). Currently, ABARES experts estimate the harvest at 7.3 million tons, USDA at 7.8 million tons, Lachstock at 8 million tons, Rabobank at 8.1 million tons.