China is returning to the Australian rapeseed market. Purchases total nearly one million metric tons

China Increases Purchases of Australian Canola

Chinese importers have contracted for approximately 15 shipments of Australian rapeseed totaling nearly 1 million metric tons. Deliveries are scheduled to arrive in early 2027, and transaction prices are reported to be around $695–705 per metric ton, including transportation costs. These purchases are driven by the favorable profitability of processing Australian canola into oil and feed meal, which is encouraging Chinese mills to secure larger quantities of the raw material.

China is gradually restoring access for Australian rapeseed to its market. In 2025, trade was limited to trial shipments, and in July 2026, import eligibility was extended to private processing plants. Recent contracts indicate that Australian rapeseed is once again gaining importance in supplying the Chinese oilseed industry. At the same time, a larger number of buyers allows for an increase in the scale of purchases.

Lower tariffs boost the competitiveness of Australian canola

Australian rapeseed currently has a price advantage over Canadian rapeseed thanks to more favorable import conditions. The Chinese tariff on raw material from Australia is 9%, while the effective rate for shipments from Canada reaches 14.9%. Lower transportation costs are an additional advantage. These differences affect the total cost of purchasing the raw material and, consequently, the profitability of producing rapeseed oil and meal used in animal feed.

The size of this year’s harvest in Australia will also be important. Forecast rapeseed production for the 2026/2027 season is approximately 7.3 million metric tons, which is 5% less than the previous year but 37% more than the ten-year average. Such a high supply could maintain Australia’s strong export potential. New orders from China offer Australian suppliers the opportunity to increase sales, while giving Chinese processors a wider choice of supply sources.