New Canola Business To China In Doubt

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Resource News International

ACanadian exporter is questioning unverified reports that China is in the market for Canadian canola, despite ongoing trade restrictions on canola infected with the common blackleg fungus.

The latest news circulating out of China have the country importing four cargoes of Canadian canola in February, with an additional two cargoes a month on the books going forward through June.

“There are a lot of rumours about business being done to China, but I haven’t seen the main players doing anything at all,” said a senior canola export official with a major Canadian grain company.

The exporter was uncertain if any of the business rumoured to have been done was actually new. He said it was more likely that any canola destined for China now was business that had already been on the books before the blackleg restrictions were put in place on November 15, 2009.

“Some people like to spread the word, either from Canada or China, that business was done,” said the exporter as he questioned the potential motives behind the rumours. He added that “rumours will never make you money.”

Aside from the uncertainty of China, the export pace remains relatively steady for canola, according to the exporter. He said there was strong movement to Pakistan and Bangladesh, in addition to the routine Japanese and Mexican business. He added that the domestic crush pace was also picking up, which should keep the supply/ demand tables well balanced.

Representatives of the Canola Council of Canada were not available for comment.

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Phil Franz-Warkentin writes for MarketsFarm specializing in grain and commodity market reporting.

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