Chinese rapeseed meal futures rise after tariffs on some Canadian imports

Zhengzhou rapeseed meal futures surged 6% at market open on Monday, the first day of trade since China's government announced tariffs on imports of rapeseed oil, oil cakes and other farm products from Canada.

The tariffs, effective from March 20, include a 100% levy on more than $1 billion worth of Canadian rapeseed oil, oil cakes and peas, as well as a 25% duty on $1.6 billion worth of Canadian aquatic products and pork.

The levies, which mirror the 100% and 25% tariffs Canada imposed on Chinese-made electric vehicles and steel last year, triggered a rally on the Zhengzhou commodity exchange.


The most-active rapeseed meal contract on the Zhengzhou exchange jumped 6.01% to 2,611 yuan ($360.11) per metric ton - the biggest daily rise since September 2022.

Analysts said the spike in prices may not last long.

"China has alternative origins for rapeseed oil such as Russia and the EU and also the Chinese import duty hike could pressure Canadian canola prices, resulting in a sharp decline in product prices," said Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group.

"It also needs to be noted that China has huge rapeseed oil stocks at the moment and the crush capacity utilisation is also considerably high," Bagani said.

China last year began an anti-dumping investigation into Canadian canola, also known as rapeseed.

It did not include the oilseed crop on its tariff list, likely offering room for negotiation during trade talks, traders and analysts said.

Canola is a key export from Canada to the world's biggest agricultural importer.