China Buys Australian Canola For The First Time Since 2020 Trade Freeze
Synopsis
A private Chinese crusher has bought 68,000 tonnes of new-crop Australian canola, marking the first known private purchase since trade was disrupted in 2020.
An unlisted private Chinese crusher, is reported to have purchased 68,000 metric tonnes of new-crop Australian canola for March shipment, a trade source said. The transaction was executed at approximately US $730 per tonne, cost and freight inclusive.
It is the first confirmed purchase by a Chinese private buyer since markets were effectively closed to Australian canola in 2020. The shipment of Australian canola was purchased by another private processor earlier this month, which is expected to arrive in September.
Why Trading Was Disrupted In 2020
Phytosanitary measures banned Australian canola access to the Chinese market in 2020 due to the spread of fungal plant disease.
China started gradually re-opening under grasspermedicals canola trade with Australia in around mid-2025. This was initially limited to trial purchases by Chinese state trader COFCO, excluding private crushers.
In July 2026, Beijing also opened access to private buyers and resumed imports of Australian canola by private Chinese processors.
New-Crop Australian Canola Deal
The most recent agreement purchased 68,000 tonnes of new-crop Australian canola for March shipment. Older-crop trade has been dominated by COFCO, with new-crop Australian canola now attracting interest from private-sector buyers, a trader said.
The canola harvest in Australia will run from October to December. The latest deal therefore would be for the newly harvested crop as opposed to the older harvest that came into China in early September. The Australian agriculture ministry was not immediately available for comment.
China Is the Top Importing Country of Canola over the Years
China is the largest canola (or rapeseed) importer in the world. Canada is the largest global exporter of canola, with Australia being the second-largest.
Canola is crushed to get meal and oil. The meal is incorporated into animal feed, and the oil itself is often used for cooking.
Australia, meanwhile, is gearing up for its next canola harvest and the resumption of access by private Chinese crushers to the Australian market follows a Western intervention that reopened private buyers in July.
Implications of the Return of Private Buying in Australia
The new 68,000-tonne purchase is the first publicly recorded contract from a private Chinese crusher after Australian canola exports were stopped. It came after an earlier delivery ordered by another private mill which reached China in September.
The deals follow the opening of the market by state-owned COFCO with purchases in 2025, and then private crushers were granted some access earlier this month when China expanded import quotas. The Australian harvest begins in October, so at this point the market for the new crop will also include private Chinese demand.
Source: Reuters
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