Canola futures fell Wednesday on the news there may be more competition for Canadian canola into China.
Reports earlier today said that China and Australia are close to a deal that would see China import five so-called test cargoes of canola from Australia. China has been closed to Australia canola since 2020 due to disease concerns, but the possible resumption of Aussie shipments could dent demand for Canadian product.
In March, China announced a 100% tariff on imports of Canadian canola oil and meal – but not seed. However, Canadian exports of canola seed to China remain the subject of a Chinese anti-dumping investigation.
Losses in European rapeseed and palm added to the downside in canola, but the Chicago soy complex was higher.
November canola dropped 414.80 to $676, and January was down 414 at $684.90.
