Canadian rapeseed exports hold steady pace

Rapeseed exports from Canada are maintaining a steady pace, but if current problems with exports to China continue, the total amount shipped may end below last year's level.

According to the latest Canadian Grain Commission data for the week ended January 17, Canada had exported 3.254 million tonnes of rapeseed during the 2009-10 crop year to date, which is in line with exports at the same point the previous year. The crop year runs from August 1 to July 31.

There seems to be pretty steady demand, said Lach Coburn, west coast manager with Cargill Ltd. He said Mexico was taking more rapeseed than had originally been anticipated, while more vessels were also destined for Dubai.

While China may be bringing in rapeseed oil via Dubai, the country has not imported any rapeseed seed from Canada since new import restrictions went into effect on November 15.

Canada exported 2.8 million tonnes of rapeseed to China in 2008-09, and the country had been poised to be another large customer in 2009-10. China is now only allowing rapeseed shipments infected with the common blackleg fungus into a few select ports, far away from the country's own rapeseed growing and processing areas. However, import permits are required to move rapeseed into those ports, and none have been issued so far, according to export officials.

Coburn said there was still no movement on resolving the China issue. Without a return of Chinese buying, Coburn said rapeseed exports could eventually fall off the previous year's pace.

He said that some of the largest months for exports in 2008-09 were in the later half of the crop year, with China a major part of that activity.

Canada exported a total of 5.213 million tonnes of rapeseed in 2008-09. Agriculture and Agri-Food Canada's market analysis division is currently forecasting exports in 2009-10 of 4.733 million tonnes.