Sales of canola out of the world’s top canola-exporting country are moving slower than merchants had anticipated — and market watchers attribute Canada’s sluggish pace to high prices and low global demand. “The export story right now is quiet,” said Peter Schutz, canola merchant at Richardson International, attributing it to a lack of demand and poor crush margins…Full Article: Manitoba Co-operator Sept 2015
- China withdrew price subsidy support for its canola/rapeseed farmers this year after the planting season. Accordingly, Chinese imports are not expected to increase until 2016.
- From 2013 to 2014, mainland Chinese imports of Canadian canola/rapeseed increased from 2.7 million MTs to 4.5 million MTs.
- In 2014, Chinese subsidized domestic prices of canola were above CNY 5,100 (~US$828) per MT, which is 40% higher than foreign imports (including shipping and taxes).
- In May 2013, a press article noted that Chinese canola importers were looking to increase imports owing to lower foreign prices vis-à-vis domestically subsidized canola.
- In April 2013, Canada, the world’s largest canola producer, was granted increased access to crushing plants in China. As a result, Canada could export canola to 11 Chinese crushing facilities (capacity of 5.5 million metric tons).
- China’s canola (rapeseed) production primarily takes places in the center of the country. In 2011, Hubei produced 2.2 million MTs of canola, while Sichuan produced 2.1 million MTs and Hunan produced 1.8 million MTs (total country output was 13.4 million MTs).