May 9, 2012

China's rapeseed imports to increase on dropping yield

The falling rapeseed crop of China will possibly spur higher imports of the oilseed from Canada and Australia, Rabobank said in a research note Monday (May 7).

"Recent crop tours to key rapeseed-producing states in China confirmed yields are likely to be higher...However, this will be more than offset by reduced acreage," the note said.

The China National Grain and Oils Information Center said earlier that farmers are opting to plant grains, which are more lucrative crops.

Imports so far this year have reached 1.35 million tonnes, with a total of two million tonnes likely for the crop year ending June 30.

Imports in the following crop year are expected "conservatively" to reach 2.3 million tonnes, Rabobank said. "Further increases are likely if trade policy is eased that currently limits rapeseed imports to specific customs zones."

Canada will account for the "vast majority" of the imports, it said.