China imported about 5.1 million tonnes of canola in the 2022/23 season, although back in January this year analysts of the US Department of Agriculture (USDA) claimed that the supply of this oilseed to the Celestial Empire will be only 2.5 million tonnes, reports Western Producer.
According to industry experts, such a sharp increase was caused by the recovery of production in Canada and a record harvest of oilseed in Australia in 2022.
For example, Canada shipped 4.71 million tonnes of canola to the PRC between August 2022 and July 2023, compared with 1.22 million tonnes in the same months of the previous crop year, according to the Canadian Grain Commission.
“China’s active demand was also fuelled by upward price dynamics in the global vegetable oil market,” experts said.
So far, the USDA expects a reduction in oilseed supplies to the Middle Kingdom in 2023/24 MY to 3.4 million tonnes amid a projected decline in production in Canada and Australia in the new season – to 17.37 million tonnes (-7% YoY) and 5.15 million tonnes (+38%), respectively.
Source: Oleoscope