AsianFin -- Chinese state trading firm COFCO has purchased up to nine cargoes of Australian canola, each weighing 60,000 metric tons, according to three trade sources cited by Reuters. The acquisitions, totaling around 540,000 tons, represent roughly 8% of China’s total canola imports last year.
The move comes after Beijing last month imposed preliminary anti-dumping duties of 75.8% on Canadian canola, effectively halting shipments from its long-standing supplier. The duties are part of a broader anti-dumping investigation amid ongoing diplomatic and trade disputes between China and Canada.
Canada has historically been China’s primary source of canola. COFCO’s recent purchases underscore Beijing’s ability to turn to alternative suppliers as trade negotiations with Ottawa remain unresolved. However, Australia’s canola output is smaller than Canada’s, and meeting China’s full demand may pose a challenge for Australian producers.
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