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China buys first Australian canola cargo since 2020, traders say
Published by Global Banking and Finance Review
Posted on August 18, 2025
3 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 18, 2025
3 min readLast updated: January 22, 2026
China resumes Australian canola imports after a 2020 ban, with COFCO purchasing 50,000 tons. This follows GMO approval and Canadian levy impacts.
(Corrects Aug 18 story to specify one cargo in paragraph 11, not both cargoes)
By Naveen Thukral and Ella Cao
SINGAPORE/BEIJING (Reuters) -Chinese state-run trading firm COFCO has booked a cargo of about 50,000 metric tons of new-crop Australian canola, two traders told Reuters, just days after Beijing imposed temporary levies on top supplier Canada.
The purchase would mark China's first imports from Australia since 2020 when Australia, the world's second-largest canola exporter, was locked out of the Chinese market, largely due to phytosanitary restrictions aimed at preventing the spread of fungal plant disease.
COFCO has purchased the cargo for November-December shipment and is negotiating for more deals, according to the two sources with direct knowledge of the deal.
The purchase price is below $600 per ton, including freight, the sources said.
COFCO did not immediately respond to Reuters' request for comment.
Reuters reported in July that Canberra was close to reaching an agreement with Beijing to allow Australian suppliers to ship five trial canola cargoes to China. It remains unclear whether COFCO's recent purchase is part of this trial agreement.
"One cargo is a done deal and there is talk (they are) going to buy more," said one of the sources, a Singapore-based trader. "Very soon there are going to be more deals."
As the world's largest canola importer, China has sourced nearly all of its canola from Canada in recent years. However, Beijing's decision last week to impose a temporary 75.8% levy is expected to cut off Canadian canola from the Asian market.
"The price is very good if you look at crush margins for canola in China," said the second trader also in Singapore, adding that canola to be shipped to China is from Australia's new crop due to be harvested in the coming months.
"By the time it arrives in China it will be end of December or early next year."
The cargo was genetically modified organisms (GMO), which require special licenses in China, the sources said.
Acquiring GMO approval was the final hurdle before China would agree to import canola cargoes from Australia, according to two other sources familiar with the matter.
On Friday, China's Ministry of Agriculture and Rural Affairs (MARA) granted seven GMO Safety Certificate approvals to COFCO Oils & Oilseeds Trading Co., a COFCO subsidiary, without disclosing specific details, an official website showed.
MARA did not immediately respond to Reuters' requests for comment.
(Reporting by Naveen Thukral in Singapore and Ella Cao in Beijing; additional reporting by Peter Hobson in Canberra; Editing by Susan Fenton)
Canola is a type of oilseed crop that is primarily grown for its oil, which is used in cooking and food products. It is also used in biodiesel production and as animal feed.
Genetically modified organisms (GMO) are organisms whose genetic material has been altered using genetic engineering techniques. This modification can enhance certain traits such as resistance to pests or improved nutritional content.
Phytosanitary restrictions are regulations imposed to prevent the introduction and spread of harmful pests and diseases in plants and plant products. These measures are crucial for protecting agriculture and biodiversity.
A cargo shipment refers to the transportation of goods in bulk, typically by sea, air, or land. It involves the movement of products from one location to another, often across international borders.
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