Beijing | Reuters — China’s most active Zhengzhou rapeseed (canola) meal futures posted their largest daily gain in nearly three months on Monday, after Canadian Prime Minister Mark Carney and Chinese President Xi Jinping met in South Korea last week without securing a breakthrough on tariffs.
Why it matters: Canadian farmers currently face punitive Chinese tariffs on canola.
The most-active rapeseed meal futures CRSM cv1 on the Zhengzhou exchange climbed 4.23 per cent to close at 2,491 yuan (C$491.97) per metric ton – the biggest daily rise since August 13, 2025.
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According to Bloomberg, Carney said on Saturday that immediate action to reduce Chinese tariffs on Canadian goods, such as canola, was never a realistic outcome for the meeting.
“There is little sign that relations between China and Canada have improved, which is supporting the rise in canola prices,” said Zhang Deqiang, an analyst at Shandong-based Sublime China Information.
In September, China extended its investigation into Canadian canola imports, granting another six months for negotiations aimed at easing a year-long trade dispute triggered by Ottawa’s tariffs on Chinese electric vehicles.
Beijing, the world’s largest importer of canola, imposed preliminary duties of 75.8 per cent on Canadian canola seed imports in August. A final ruling could result in a different rate, or overturn the decision.
Canada, the world’s largest exporter of canola, shipped almost C$5 billion of canola products to China in 2024, about 80 per cent of which were seed. The steep duties on canola seed, if they remain in place, would probably all but end those imports.
Canola is crushed to produce cooking oil and other products. The meal left behind in the crushing process is used as livestock feed.
