By Ella Cao, Lewis Jackson and Mei Mei Chu
BEIJING (Reuters) -Zhengzhou rapeseed meal and oil contracts jumped on Monday, the first day of trade since China decided to impose 100% tariffs on imports of those products from Canada.
The most-active rapeseed meal futures on the Zhengzhou exchange climbed 6% to 2,611 yuan ($360) per metric ton – the biggest daily rise since September 2022.
Rapeseed oil futures gained 5.2% to 9,213 yuan ($1,270) per ton.
Canada’s exports of rapeseed oil, oil cakes and peas were worth roughly $1 billion last year. The tariffs, effective March 20, come in tandem with a 25% duty on Canadian aquatic products and pork, worth $1.6 billion in 2024.
The levies follow 100% and 25% tariffs Canada imposed on Chinese-made electric vehicles and steel last year.
Analysts said the spike in prices may not last long.
“China has alternative origins for rapeseed oil such as Russia and the EU and also the Chinese import duty hike could pressure Canadian canola prices, resulting in a sharp decline in product prices,” said Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group.
“It also needs to be noted that China has huge rapeseed oil stocks at the moment and the crush capacity utilisation is also considerably high,” Bagani said.
China last year began an anti-dumping investigation into Canadian rapeseed but rapeseed was not included among the tariffs announced on Saturday, just rapeseed meal and oil.
This likely leaves room for negotiation during trade talks, traders and analysts said.
($1 = 7.2570 Chinese yuan)
(Reporting by Ella Cao, Lewis Jackson and Mei Mei Chu in Beijing; Editing by Christopher Cushing and Edwina Gibbs)
