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New canola business to China questioned

(Resource News International) — China may be in the market for Canadian canola, despite ongoing trade restrictions on canola infected with the common blackleg fungus, according to some unverified reports.

However, a Canadian exporter questioned the validity of the latest rumours.

The latest news circulating out of China has 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.

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 Nov. 15, 2009, he said.

“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.

There was strong movement to Pakistan and Bangladesh, in addition to the routine Japanese and Mexican business, he said, adding that the domestic crush pace was also picking up, which should keep supply/demand tables well balanced.

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

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