China will further relax restrictions on imports of Canadian canola in the second half of this year, Reuters reported on Thursday morning.
Imports had been restricted to crushing plants on the coast but with the relaxation of rules, some plants in major growing areas will also be able to take Canadian canola.
The restrictions were imposed in 2009 because of blackleg disease that is common in Canadian canola production but not a problem because of resistant varieties. The Chinese were worries the disease would spread to its rapeseed growing regions.
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Last year the Chinese government also loosened the policy, and about eight plants can now take Canadian product.
China’s imports of Canadian canola seed are running at twice the pace of last year at the same time, partly due to that action. China is surpassing Japan as the leading importer of Canadian canola so far this year.
Reuters, quoting unnamed Chinese traders, reports that now another nine plants will be authorized to take Canadian seed.
Canola Council of Canada vice-president Jim Everson is quoted as saying the capacity of the nine plants that already accept Canadian seed exceed the available supply from Canada this year.
The news did not lift canola prices on the ICE Canada exchange on Thursday morning. Futures prices had rallied for 18 straight trading days, but were down Thursday on overbought signals and profit taking after the strong rally.
