Australia’s First Canola Cargo to China in Years May Depart Soon

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(Bloomberg) — Australia is set to ship its first canola to China in five years, with a vessel hauling a trial cargo of the oilseed expected to depart for Qingdao in less than a week.

Financial Post

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The bulk carrier Armonia A is due to dock in Esperance in the state of Western Australia on Wednesday, according to a loading schedule from exporter CBH Grain Pty Ltd., where it will take on a cargo of about 60,000 tons of canola.

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The vessel will then head for the port of Qingdao in China’s northeast, according to a shipping manifest on Southern Ports’ website. The carrier will depart from Australia on either Friday or Saturday.

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At least three trial cargoes of the oilseed have been booked by China for the fourth quarter, marking the first shipments since Australia was shut out of the market in 2020 over phytosanitary concerns. According to the Australian agriculture department’s website, the canola trial is underway, with a view to supplying cargoes containing less than 1% of “non-seed material.”

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The trial follows a souring in relations between China and Canada, the oilseed’s top exporter. Prior to their dispute, almost all of the 6.39 million tons of canola imported by China in 2024 came from Canada.

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A spokesperson for Australia’s agriculture department said the government “negotiates improvements to conditions for agricultural trade with all trading partners, including China.”

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The chief executive officer of export lobby Grain Trade Australia, Pat O’Shannassy, said a successful trial would be a significant milestone. “But we don’t want to be getting ahead of ourselves,” he said. “There’s still a trial that needs to meet whatever criteria has been established.”

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