Market Info: “Canadian canola prices spike as shippers find back door to China”

Canada is the world's biggest canola producer.  As top oilseed buyer China Chinese blocked canola shipments by two Canadian exporters since March 2019, the rest of the market should be well supplied, but exporters find roundabout ways to reach China. China is buying less from Canada directly, it has bought canola oil instead from Europe, Russia, Australia and the United Arab Emirates, with some of that oil made from Canadian canola and Canadian canola prices have soared to the highest level in nearly two years. In fact, Canadian canola exports to China fell 45 % year over year during the                  11-month period through June, however total canola exports have jumped 9 %, helped by a tripling of sales to France and double the shipments to the UAE. The global canola oil demand has also prompted Canadian crushers to process canola at a brisk pace and bad crop weather and insect attacks in Europe have also lifted prices (rapeseed production in the European Union and Britain is expected near the 13-year low seen in 2019).