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Analyst says Canada can meet China’s canola requirements

Countries agreed to extension in dispute

By Diego Flammini
Assistant Editor, North American Content
Farms.com

An analyst with Weber Commodities Ltd. in Saskatoon believes Canada can meet China’s needs when it comes to canola imports.

Larry Weber looks at Canada’s wheat exports and sees no reason why canola can’t follow suit.

“If we can export 18 million tonnes of wheat with 0.5 per cent dockage, why can’t we ship four million tonnes to the Chinese with one per cent?” he told CBC.

Canola field

China, which accounts for about 40 per cent of Canadian canola exports, was scheduled to implement new regulations on September 1 that allows one per cent of dockage per tonne of canola. The current Canadian standard is 2.5 per cent of dockage per tonne.

Prime Minister Justin Trudeau is currently in China on his first official visit, where he and Chinese premier Li Keqiang announced an extension of the September 1 deadline.

"We're happy to reassure Canadian farmers that (at) the Sept. 1 deadline we will be able to continue with the current regime of canola and we (will) work together very closely towards a long-term solution in the coming days and weeks ahead," Trudeau said according to CBC.


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The 12-day war between Iran-Israel came to an end sending crude oil futures plunging as the big fund speculators removed the war risk premium.

The weather risk premium in the Ag complex is sending corn, wheat and soybean futures lower on month-end selling ahead of the market moving USDA quarterly grain stocks and acreage reports on June 30th.

Instead, funds were chasing and sending tech stocks higher with the S&P 500/NASDAQ indexes setting new all-time record highs!

June 1 USDA Hogs and pigs report was slightly bearish while the U.S. $ Index traded to new contract lows as the de-dollarization that began in 2014 continues.

Feed in the form of soybean meal futures for livestock producers got cheaper, trading to new contract lows.

The Stats Canada seeded acreage update was bullish canola and wheat.