BEIJING, March 1 (Reuters) – China’s rapeseed meal futures on Friday jumped more than 4 percent on worries that supplies would tighten as cargoes from major supplier Canada were said to be receiving higher scrutiny at ports.
The most active rapeseed meal futures on Zhengzhou Commodity Exchange (ZCE) for delivery in May rose 4.2 percent to 2,166 yuan ($323.40) per tonne, their biggest daily gain since April 2018.
The rally was supported by market rumours that China has rejected applications for GMO certificates that are required to import rapeseed meal and rapeseed oil cargoes, amid souring Sino-Canadian relations.
A political dispute between China and Canada over the arrest of a Huawei executive is slowing canola shipments through Chinese ports, traders told Reuters in early February.
Reuters could not immediately confirm that GMO certificates for rapeseed cargoes from Canada had been rejected.
China’s most active rapeseed oil futures on the ZCE also rose about 3 percent to 6,810 yuan per tonne, their biggest daily jump since at least September 2012.
Canadian rapeseed cargoes have already run into delays at Chinese ports following a political dispute between Beijing and Ottawa. Some importers have chosen to avoid shipments from Canada, China’s top supplier of the feed grain.
China imports rapeseed to crush into meal to feed its vast herds of farm animals and to make vegetable oil.
Relations between China and Canada took a downturn in December when Canadian authorities arrested Huawei Technologies Chief Financial Officer Meng Wanzhou for extradition to the United States.
Shortly after, China detained two Canadians and sentenced a third to death for drug smuggling, moves that Ottawa has said are deeply concerning.
($1 = 6.6969 yuan) (Reporting by Hallie Gu and Dominique Patton; Editing by Tom Hogue)