China Widens Australian Canola Trade to Include Private Crushers

China will allow its private oilseed crushers to buy Australian canola, as the two countries move to normalize a trade that’s largely been halted since the start of the decade.

(Bloomberg) — China will allow its private oilseed crushers to buy Australian canola, as the two countries move to normalize a trade that’s largely been halted since the start of the decade. Some private crushers were told this week they can apply for permits to import the crop, according to people with knowledge of the matter. The firms have been included in a trial program that should presage an official agreement between the two governments to fully open up the trade, the people said, declining to be named discussing a sensitive issue.

China’s customs office didn’t immediately respond to a fax seeking comment. Beijing halted imports of Australian canola in 2020, citing plant health concerns. State-run trader Cofco International Ltd. resumed booking cargoes on a trial basis last year, fanning hopes of a broader revival in shipments.

That incremental reopening coincided with a trade rift with Canada, China’s main canola supplier, after Ottawa slapped levies on Chinese electric vehicles, steel and aluminum. The two countries have since mended relations. At the same time, China has resumed purchases of US soybeans, giving the country broad access to a category of commodities used for cooking, food manufacturing and livestock rations.

Traders said last month that private crushers had already begun inquiring about Australian canola for delivery in the fourth quarter in anticipation of a pact. The phytosanitary rules for canola shipments to China have also been revised, according to a notice on the Australian agriculture ministry’s website that covers an exhaustive list of pests to be avoided, from bacterial leaf blight to turnip weed, and other quality requirements. —With assistance from Ben Westcott and Sarah Chen.