Canadian exporters have made a few smaller export trades with canola for the more stringent quality conditions of China. Market participants fear that these new conditions of sale USD/p.a. paralyze the canola exports valued at 1.55 billion so far.
The dispute between Canada and China on a quality standard of canola deliveries from September 1 to cloud the visit planned for next week by Prime Minister Justin Trudeau. Both Nations want to increase trade with each other.
Canada's Trade Minister threatened that talks about a deepening of trade relations can not be recorded with Beijing before the subject of canola was not satisfactorily resolved.
The sales of the oilseed from the edible oil and animal feed produced which were now known, now undermined the bargaining position of the Minister.
Representatives of associations in Canada, the biggest canola exporter in the world, saying that the new quality requirements only with increased effort can be complied. China, Canada's largest canola customer requests that less foreign components such as straw are to be delivered to reduce the risk of the spread of diseases.
Dealer of company Cargill, Louis Dreyfus and Parrish & home Becker have unofficially confirmed canola sales from 30,000 to 60,000 tonnes for deliveries after September 1. The largest exporter of canola Canada's Richardson, hesitates with qualifications to the new conditions.
