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6 days ago
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Australia nears breakthrough canola deal with China, sources say
(Refiles story to add bullets) By Peter Hobson and Ella Cao CANBERRA/BEIJING (Reuters) -Canberra is close to an agreement with Beijing that would allow Australian suppliers to ship five trial canola cargoes to China, sources familiar with the matter said, a move towards ending a years-long freeze in the trade. China, the world's largest canola importer, sources nearly all of its imports from Canada but those supplies could be limited by an anti-dumping probe Beijing is conducting. China imposed 100% tariffs on Canadian canola meal and oil this year amid strained diplomatic ties. Australia, the second-largest canola exporter, has been shut out of the Chinese market since 2020, mainly due to Chinese rules to stop the spread of fungal plant disease, but the trial cargoes could reopen trade and reduce Canada's market share. Chinese and Australian officials are finalising a framework to address Beijing's phytosanitary requirements aimed at preventing the spread of blackleg disease, according to two Australian agriculture industry sources briefed on the negotiations. "It looks like we've found a pathway that works for everyone," said one of the sources. "Now we need to run a few ships and see if it all works." The five trial cargoes will be handled by trading companies once the framework is agreed, the sources said. Two trading company sources familiar with the negotiations said the shipments would carry between 150,000 and 250,000 metric tons of Australian canola, also known as rapeseed, to China. The sources declined to be named as they were not authorised to speak publicly on the matter. In response to a query from Reuters, Australia's agriculture ministry said: "This is an active and ongoing government-government discussion and details have not yet been finalised." China's Ministry of Commerce and General Administration of Customs did not immediately respond to a request for comment. China has bought an average of 4 million metric tons of canola, worth over $2 billion, each year for the last five years, for use in cooking oil, renewable fuels, and animal feed. Australian Prime Minister Anthony Albanese is currently visiting China, underscoring a warming of ties since his Labor government won power in 2022. The planned shipments follow smaller test deliveries last year, when Australia exported 500 tons of canola to China in both June and July 2024, according to Australian trade data. The negotiations have focused on addressing China's requirement that canola shipments contain less than 1% admixture — impurities such as chaff and broken seeds - and its concerns of blackleg contamination, the two sources briefed on the talks said. Unlike Canadian exporters, who clean their canola before shipping, Australian suppliers often exceed this limit. Additional demand from China should lift Australian canola prices, traders said, but Australia may not be able to fully replace Canadian canola in China. The Australian government expects the upcoming harvest later this year to produce 5.7 million tons of canola, the least in five years, due to unfavourable weather and a smaller planted area. Of that, Australia will likely export around 4 million tons of canola, much of which may be earmarked for longstanding customers in Europe and elsewhere, said one of the trade sources. "China might struggle to get more than their trial volume depending on how quick they move," the person said. China had 159,000 tons of imported canola in its stockpiles as of July 4, the lowest level for this time of year in nearly four years, said Zhang Deqiang, an analyst at Shandong-based Sublime China Information.
Yahoo
6 days ago
- Business
- Yahoo
Australia nears breakthrough canola deal with China, sources say
(Refiles story to add bullets) By Peter Hobson and Ella Cao CANBERRA/BEIJING (Reuters) -Canberra is close to an agreement with Beijing that would allow Australian suppliers to ship five trial canola cargoes to China, sources familiar with the matter said, a move towards ending a years-long freeze in the trade. China, the world's largest canola importer, sources nearly all of its imports from Canada but those supplies could be limited by an anti-dumping probe Beijing is conducting. China imposed 100% tariffs on Canadian canola meal and oil this year amid strained diplomatic ties. Australia, the second-largest canola exporter, has been shut out of the Chinese market since 2020, mainly due to Chinese rules to stop the spread of fungal plant disease, but the trial cargoes could reopen trade and reduce Canada's market share. Chinese and Australian officials are finalising a framework to address Beijing's phytosanitary requirements aimed at preventing the spread of blackleg disease, according to two Australian agriculture industry sources briefed on the negotiations. "It looks like we've found a pathway that works for everyone," said one of the sources. "Now we need to run a few ships and see if it all works." The five trial cargoes will be handled by trading companies once the framework is agreed, the sources said. Two trading company sources familiar with the negotiations said the shipments would carry between 150,000 and 250,000 metric tons of Australian canola, also known as rapeseed, to China. The sources declined to be named as they were not authorised to speak publicly on the matter. In response to a query from Reuters, Australia's agriculture ministry said: "This is an active and ongoing government-government discussion and details have not yet been finalised." China's Ministry of Commerce and General Administration of Customs did not immediately respond to a request for comment. China has bought an average of 4 million metric tons of canola, worth over $2 billion, each year for the last five years, for use in cooking oil, renewable fuels, and animal feed. Australian Prime Minister Anthony Albanese is currently visiting China, underscoring a warming of ties since his Labor government won power in 2022. The planned shipments follow smaller test deliveries last year, when Australia exported 500 tons of canola to China in both June and July 2024, according to Australian trade data. The negotiations have focused on addressing China's requirement that canola shipments contain less than 1% admixture — impurities such as chaff and broken seeds - and its concerns of blackleg contamination, the two sources briefed on the talks said. Unlike Canadian exporters, who clean their canola before shipping, Australian suppliers often exceed this limit. Additional demand from China should lift Australian canola prices, traders said, but Australia may not be able to fully replace Canadian canola in China. The Australian government expects the upcoming harvest later this year to produce 5.7 million tons of canola, the least in five years, due to unfavourable weather and a smaller planted area. Of that, Australia will likely export around 4 million tons of canola, much of which may be earmarked for longstanding customers in Europe and elsewhere, said one of the trade sources. "China might struggle to get more than their trial volume depending on how quick they move," the person said. China had 159,000 tons of imported canola in its stockpiles as of July 4, the lowest level for this time of year in nearly four years, said Zhang Deqiang, an analyst at Shandong-based Sublime China Information.
Yahoo
6 days ago
- Business
- Yahoo
Exclusive-Australia nears breakthrough canola deal with China, sources say
By Peter Hobson and Ella Cao CANBERRA/BEIJING (Reuters) -Canberra is close to an agreement with Beijing that would allow Australian suppliers to ship five trial canola cargoes to China, sources familiar with the matter said, a move towards ending a years-long freeze in the trade. China, the world's largest canola importer, sources nearly all of its imports from Canada but those supplies could be limited by an anti-dumping probe Beijing is conducting. China imposed 100% tariffs on Canadian canola meal and oil this year amid strained diplomatic ties. Australia, the second-largest canola exporter, has been shut out of the Chinese market since 2020, mainly due to Chinese rules to stop the spread of fungal plant disease, but the trial cargoes could reopen trade and reduce Canada's market share. Chinese and Australian officials are finalising a framework to address Beijing's phytosanitary requirements aimed at preventing the spread of blackleg disease, according to two Australian agriculture industry sources briefed on the negotiations. "It looks like we've found a pathway that works for everyone," said one of the sources. "Now we need to run a few ships and see if it all works." The five trial cargoes will be handled by trading companies once the framework is agreed, the sources said. Two trading company sources familiar with the negotiations said the shipments would carry between 150,000 and 250,000 metric tons of Australian canola, also known as rapeseed, to China. The sources declined to be named as they were not authorised to speak publicly on the matter. In response to a query from Reuters, Australia's agriculture ministry said: "This is an active and ongoing government-government discussion and details have not yet been finalised." China's Ministry of Commerce and General Administration of Customs did not immediately respond to a request for comment. China has bought an average of 4 million metric tons of canola, worth over $2 billion, each year for the last five years, for use in cooking oil, renewable fuels, and animal feed. Australian Prime Minister Anthony Albanese is currently visiting China, underscoring a warming of ties since his Labor government won power in 2022. The planned shipments follow smaller test deliveries last year, when Australia exported 500 tons of canola to China in both June and July 2024, according to Australian trade data. The negotiations have focused on addressing China's requirement that canola shipments contain less than 1% admixture — impurities such as chaff and broken seeds - and its concerns of blackleg contamination, the two sources briefed on the talks said. Unlike Canadian exporters, who clean their canola before shipping, Australian suppliers often exceed this limit. Additional demand from China should lift Australian canola prices, traders said, but Australia may not be able to fully replace Canadian canola in China. The Australian government expects the upcoming harvest later this year to produce 5.7 million tons of canola, the least in five years, due to unfavourable weather and a smaller planted area. Of that, Australia will likely export around 4 million tons of canola, much of which may be earmarked for longstanding customers in Europe and elsewhere, said one of the trade sources. "China might struggle to get more than their trial volume depending on how quick they move," the person said. China had 159,000 tons of imported canola in its stockpiles as of July 4, the lowest level for this time of year in nearly four years, said Zhang Deqiang, an analyst at Shandong-based Sublime China Information. Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Australia nears breakthrough canola deal with China, sources say
(Refiles story to add bullets) By Peter Hobson and Ella Cao CANBERRA/BEIJING (Reuters) -Canberra is close to an agreement with Beijing that would allow Australian suppliers to ship five trial canola cargoes to China, sources familiar with the matter said, a move towards ending a years-long freeze in the trade. China, the world's largest canola importer, sources nearly all of its imports from Canada but those supplies could be limited by an anti-dumping probe Beijing is conducting. China imposed 100% tariffs on Canadian canola meal and oil this year amid strained diplomatic ties. Australia, the second-largest canola exporter, has been shut out of the Chinese market since 2020, mainly due to Chinese rules to stop the spread of fungal plant disease, but the trial cargoes could reopen trade and reduce Canada's market share. Chinese and Australian officials are finalising a framework to address Beijing's phytosanitary requirements aimed at preventing the spread of blackleg disease, according to two Australian agriculture industry sources briefed on the negotiations. "It looks like we've found a pathway that works for everyone," said one of the sources. "Now we need to run a few ships and see if it all works." The five trial cargoes will be handled by trading companies once the framework is agreed, the sources said. Two trading company sources familiar with the negotiations said the shipments would carry between 150,000 and 250,000 metric tons of Australian canola, also known as rapeseed, to China. The sources declined to be named as they were not authorised to speak publicly on the matter. In response to a query from Reuters, Australia's agriculture ministry said: "This is an active and ongoing government-government discussion and details have not yet been finalised." China's Ministry of Commerce and General Administration of Customs did not immediately respond to a request for comment. China has bought an average of 4 million metric tons of canola, worth over $2 billion, each year for the last five years, for use in cooking oil, renewable fuels, and animal feed. Australian Prime Minister Anthony Albanese is currently visiting China, underscoring a warming of ties since his Labor government won power in 2022. The planned shipments follow smaller test deliveries last year, when Australia exported 500 tons of canola to China in both June and July 2024, according to Australian trade data. The negotiations have focused on addressing China's requirement that canola shipments contain less than 1% admixture — impurities such as chaff and broken seeds - and its concerns of blackleg contamination, the two sources briefed on the talks said. Unlike Canadian exporters, who clean their canola before shipping, Australian suppliers often exceed this limit. Additional demand from China should lift Australian canola prices, traders said, but Australia may not be able to fully replace Canadian canola in China. The Australian government expects the upcoming harvest later this year to produce 5.7 million tons of canola, the least in five years, due to unfavourable weather and a smaller planted area. Of that, Australia will likely export around 4 million tons of canola, much of which may be earmarked for longstanding customers in Europe and elsewhere, said one of the trade sources. "China might struggle to get more than their trial volume depending on how quick they move," the person said. China had 159,000 tons of imported canola in its stockpiles as of July 4, the lowest level for this time of year in nearly four years, said Zhang Deqiang, an analyst at Shandong-based Sublime China Information. Sign in to access your portfolio
Yahoo
08-07-2025
- Business
- Yahoo
Bunge charters first Argentine soy meal cargo to China
By Maximilian Heath and Ella Cao BUENOS AIRES/BEIJING (Reuters) -U.S. grains trading group Bunge has chartered 30,000 metric tons of Argentine soybean meal cargo destined for China, data seen by Reuters on Monday showed, marking the first such soymeal cargo since Beijing approved Argentine imports in 2019. Argentina is the world's largest exporter of soybean meal. China, meanwhile, is the world's largest importer of soybeans, though does not typically buy soybean meal, rather it processes the beans itself to produce the meal it uses as animal feed. According to data from local maritime agency NABSA, Bunge will ship the soybean meal from the Terminal 6 facility it operates with Argentina's AGD in San Lorenzo, north of the farm hub city of Rosario, where the vessel NORDTAJO is expected to dock around July 16 to transport the cargo. Ship tracking data on LSEG Workspace shows the vessel currently positioned off the west coast of Africa on route to San Lorenzo. Bunge in Argentina did not respond to a request to comment. Reuters reported last month that several Chinese animal feed makers had signed a deal for a maiden soymeal shipment as China's animal feed industry looks to broaden its supply options to mitigate potential disruptions from the U.S.-China trade war. The shipment is seen as a test case for China, which currently imports hardly any soybean meal. If successful, it could potentially nudge open what has been a largely closed market. "It is a very important shipment that Bunge is making in July because it implies a real and effective opening of trade," Gustavo Idigoras, head of Argentina's CIARA-CEC chamber of oilseed and grains crushers and exporters, told Reuters. "This should allow for a permanent flow in the future," he said, adding that Argentine soymeal was "very competitive" in both quality and price compared to local Chinese production. Most of the soybeans China imports come from Brazil and the United States. Chinese buyers have been scooping up Brazilian soybeans and shunning U.S. exports due to high tariffs imposed amid an ongoing trade war between Beijing and Washington. In 2024, Argentina exported a total of 27.2 million tons of soybean meal, valued at $10.55 billion. Vietnam was the main destination for shipments, accounting for 15% of the total. China opened its market to Argentine soymeal in 2019 after years of resistance motivated by a desire to protect its domestic crushing industry. Despite the approval, no purchases of bulk cargoes of Argentine soymeal had been recorded until now, according to Chinese customs data. Sign in to access your portfolio
