Latest news with #TonyTryhuk
The Sun
4 days ago
- Business
- The Sun
China imposes 75.8% anti-dumping duty on Canadian canola
BEIJING/SINGAPORE: China on Tuesday announced preliminary anti-dumping duties on Canadian canola imports, a new escalation in the year-long trade dispute that began with Ottawa's imposition of tariffs on Chinese electric vehicle imports last August. The provisional rate will be set at 75.8%, effective from Thursday, the Ministry of Commerce said in a statement. Canola Council of Canada President Chris Davison said that rate makes the Chinese market effectively closed for Canadian canola, to which Canada exported almost C$5 billion ($3.64 billion) of the oilseed crop in 2024. ICE November canola futures fell as much as 6.5% to a four-month low after the announcement. 'This really came as a surprise and a shock,' said trader Tony Tryhuk of RBC Dominion Securities. China, the world's largest importer of canola, also known as rapeseed, sources nearly all its supplies of the product from Canada. The steep duties would likely all but end imports if they are maintained. 'This is huge. Who will pay a 75% deposit to bring Canadian canola to China? It is like telling Canada that we don't need your canola, thank you very much,' said one Singapore-based oilseed trader. China imposed tariffs on canola oil and meal in March. Canada is now in a trade conflict with the world's two largest economies, as its exports also face tariffs imposed by the United States. Canada's number one canola market is the U.S., followed by China. China's Ministry of Commerce said an anti-dumping probe launched in September 2024 had found that Canada's agricultural sector - particularly the canola industry - had benefited from substantial government subsidies and preferential policies. The Canadian government and canola industry have previously rejected allegations of dumping. The industry believes China's complaint is based on other ongoing trade and political disputes, Davison said. A final ruling could result in a different rate, or overturn Tuesday's decision. The decision marks a shift from the conciliatory tone struck in June when China Premier Li Qiang said there were no deep-seated conflicts of interest between the countries during a phone call with Canadian Prime Minister Mark Carney. 'This move ... will put additional pressure on Canada's government to sort through trade frictions with China,' said Trivium China agriculture analyst Even Rogers Pay. Canada's trade, agriculture and prime minister's office did not immediately respond to request for comment. Canada has imposed tariffs on Chinese electric vehicles, steel and aluminum. Separately, China also launched an anti-dumping investigation into Canadian pea starch and imposed provisional duties on imports of halogenated butyl rubber, according to ministry statements. NO EASY REPLACEMENT Replacing millions of tons of Canadian canola is likely to be difficult at short notice, say analysts. China uses imported canola to make animal feed for its aquaculture sector, as well as for cooking oil. The move provides an opportunity for Australia, which looks set to regain access to the Chinese market with test cargoes this year after a years-long freeze in the trade, Pay said. Australia, the second-largest canola exporter, has been shut out of the Chinese market since 2020 due mainly to Chinese rules to stop the spread of fungal plant disease. However, even if Australian imports increase, 'fully replacing Canadian canola will be very difficult unless import demand drops sharply', said Donatas Jankauskas, an analyst with commodity data firm CM Navigator. Davison said his industry believes China will need Canada's canola to meet the sort of demand it has experienced in recent years. 'I think the expectation would be that they could not meet those needs with a quality of a product and the volume that we provide,' Davison said. Canadian farmers are about to begin harvesting canola and will not be happy to see prices plunge, said Canadian Canola Growers Association President Rick White. As long as the prohibitive duty is there farmers face suppressed prices. 'It's going to certainly have a damping effect on price for farmers and they're going to be stuck with that,' White said. Commodity funds have a substantial long position in ICE canola futures, traders said, which should add fuel to the selloff fire. 'This will help accelerate their exit of that long and could really extend the losses,' said Tryhuk. Another trader said there was already downward pressure coming into canola prices as Canada's crop is widely believed to be bigger than many previously forecast due to good weather. Ventum Financial broker David Derwin said traders were unsure about how to take the Chinese move yet, since it is not a final rule. 'Is it a negotiating tactic? Or does China put it in and that's that?,' Derwin asked. ($1 = 1.3754 Canadian dollars) - Reuters
The Advertiser
4 days ago
- Business
- The Advertiser
China duties on Canadian canola may advantage Australia
China has announced preliminary anti-dumping duties on Canadian canola imports in a new escalation in the year-long trade dispute that began with Canada's imposition of tariffs on Chinese electric vehicle imports last August. The provisional rate will be set at 75.8 per cent, effective from Thursday, the Ministry of Commerce said in a statement. Canola Council of Canada president Chris Davison said that rate makes the Chinese market effectively closed for Canadian canola, to which Canada exported about C$5 billion ($A5.60 billion) of the oilseed crop in 2024. ICE November canola futures fell as much as 6.5 per cent to a four-month low after the announcement. "This really came as a surprise and a shock," trader Tony Tryhuk of RBC Dominion Securities said. China, the world's largest importer of canola which is also known as rapeseed, sources nearly all its supplies of the product from Canada. The steep duties would likely all but end imports if they are maintained. "This is huge. Who will pay a 75 per cent deposit to bring Canadian canola to China? It is like telling Canada that we don't need your canola, thank you very much," one Singapore-based oilseed trader said. China imposed tariffs on canola oil and meal in March. Canada is now in a trade conflict with the world's two largest economies, as it also faces tariffs on goods from the United States. Canada's number one canola market is the US, followed by China. China's Ministry of Commerce said an anti-dumping probe launched in September 2024 had found that Canada's agricultural sector - particularly the canola industry - had benefited from substantial government subsidies and preferential policies. The Canadian government and canola industry have previously rejected allegations of dumping. The industry believes China's complaint is based on other ongoing trade and political disputes, Davison said. A final ruling could result in a different rate, or overturn Tuesday's decision. The decision marks a shift from the conciliatory tone struck in June when China Premier Li Qiang said there were no deep-seated conflicts of interest between the countries during a phone call with Canadian Prime Minister Mark Carney. "This move ... will put additional pressure on Canada's government to sort through trade frictions with China," said Trivium China agriculture analyst Even Rogers Pay. Canada's trade, agriculture and prime minister's office did not immediately respond to request for comment. Canada has imposed tariffs on Chinese electric vehicles, steel and aluminium. Separately, China also launched an anti-dumping investigation into Canadian pea starch and imposed provisional duties on imports of halogenated butyl rubber, according to ministry statements. Replacing millions of tons of Canadian canola is likely to be difficult at short notice, analysts say. China uses imported canola to make animal feed for its aquaculture sector, as well as for cooking oil. The move provides an opportunity for Australia, which looks set to regain access to the Chinese market with test cargoes this year after a years-long freeze in the trade, Pay said. Australia, the second-largest canola exporter, has been shut out of the Chinese market since 2020 due mainly to Chinese rules to stop the spread of fungal plant disease. However, even if Australian imports increase, "fully replacing Canadian canola will be very difficult unless import demand drops sharply," said Donatas Jankauskas, an analyst with commodity data firm CM Navigator. Davison said his industry believes China will need Canada's canola to meet the sort of demand it has experienced in recent years. "I think the expectation would be that they could not meet those needs with a quality of a product and the volume that we provide," Davison said. Canadian farmers are about to begin harvesting canola and will not be happy to see prices plunge, Canadian Canola Growers Association president Rick White said. As long as the prohibitive duty is there farmers face suppressed prices. "It's going to certainly have a damping effect on price for farmers and they're going to be stuck with that," White said. China has announced preliminary anti-dumping duties on Canadian canola imports in a new escalation in the year-long trade dispute that began with Canada's imposition of tariffs on Chinese electric vehicle imports last August. The provisional rate will be set at 75.8 per cent, effective from Thursday, the Ministry of Commerce said in a statement. Canola Council of Canada president Chris Davison said that rate makes the Chinese market effectively closed for Canadian canola, to which Canada exported about C$5 billion ($A5.60 billion) of the oilseed crop in 2024. ICE November canola futures fell as much as 6.5 per cent to a four-month low after the announcement. "This really came as a surprise and a shock," trader Tony Tryhuk of RBC Dominion Securities said. China, the world's largest importer of canola which is also known as rapeseed, sources nearly all its supplies of the product from Canada. The steep duties would likely all but end imports if they are maintained. "This is huge. Who will pay a 75 per cent deposit to bring Canadian canola to China? It is like telling Canada that we don't need your canola, thank you very much," one Singapore-based oilseed trader said. China imposed tariffs on canola oil and meal in March. Canada is now in a trade conflict with the world's two largest economies, as it also faces tariffs on goods from the United States. Canada's number one canola market is the US, followed by China. China's Ministry of Commerce said an anti-dumping probe launched in September 2024 had found that Canada's agricultural sector - particularly the canola industry - had benefited from substantial government subsidies and preferential policies. The Canadian government and canola industry have previously rejected allegations of dumping. The industry believes China's complaint is based on other ongoing trade and political disputes, Davison said. A final ruling could result in a different rate, or overturn Tuesday's decision. The decision marks a shift from the conciliatory tone struck in June when China Premier Li Qiang said there were no deep-seated conflicts of interest between the countries during a phone call with Canadian Prime Minister Mark Carney. "This move ... will put additional pressure on Canada's government to sort through trade frictions with China," said Trivium China agriculture analyst Even Rogers Pay. Canada's trade, agriculture and prime minister's office did not immediately respond to request for comment. Canada has imposed tariffs on Chinese electric vehicles, steel and aluminium. Separately, China also launched an anti-dumping investigation into Canadian pea starch and imposed provisional duties on imports of halogenated butyl rubber, according to ministry statements. Replacing millions of tons of Canadian canola is likely to be difficult at short notice, analysts say. China uses imported canola to make animal feed for its aquaculture sector, as well as for cooking oil. The move provides an opportunity for Australia, which looks set to regain access to the Chinese market with test cargoes this year after a years-long freeze in the trade, Pay said. Australia, the second-largest canola exporter, has been shut out of the Chinese market since 2020 due mainly to Chinese rules to stop the spread of fungal plant disease. However, even if Australian imports increase, "fully replacing Canadian canola will be very difficult unless import demand drops sharply," said Donatas Jankauskas, an analyst with commodity data firm CM Navigator. Davison said his industry believes China will need Canada's canola to meet the sort of demand it has experienced in recent years. "I think the expectation would be that they could not meet those needs with a quality of a product and the volume that we provide," Davison said. Canadian farmers are about to begin harvesting canola and will not be happy to see prices plunge, Canadian Canola Growers Association president Rick White said. As long as the prohibitive duty is there farmers face suppressed prices. "It's going to certainly have a damping effect on price for farmers and they're going to be stuck with that," White said. China has announced preliminary anti-dumping duties on Canadian canola imports in a new escalation in the year-long trade dispute that began with Canada's imposition of tariffs on Chinese electric vehicle imports last August. The provisional rate will be set at 75.8 per cent, effective from Thursday, the Ministry of Commerce said in a statement. Canola Council of Canada president Chris Davison said that rate makes the Chinese market effectively closed for Canadian canola, to which Canada exported about C$5 billion ($A5.60 billion) of the oilseed crop in 2024. ICE November canola futures fell as much as 6.5 per cent to a four-month low after the announcement. "This really came as a surprise and a shock," trader Tony Tryhuk of RBC Dominion Securities said. China, the world's largest importer of canola which is also known as rapeseed, sources nearly all its supplies of the product from Canada. The steep duties would likely all but end imports if they are maintained. "This is huge. Who will pay a 75 per cent deposit to bring Canadian canola to China? It is like telling Canada that we don't need your canola, thank you very much," one Singapore-based oilseed trader said. China imposed tariffs on canola oil and meal in March. Canada is now in a trade conflict with the world's two largest economies, as it also faces tariffs on goods from the United States. Canada's number one canola market is the US, followed by China. China's Ministry of Commerce said an anti-dumping probe launched in September 2024 had found that Canada's agricultural sector - particularly the canola industry - had benefited from substantial government subsidies and preferential policies. The Canadian government and canola industry have previously rejected allegations of dumping. The industry believes China's complaint is based on other ongoing trade and political disputes, Davison said. A final ruling could result in a different rate, or overturn Tuesday's decision. The decision marks a shift from the conciliatory tone struck in June when China Premier Li Qiang said there were no deep-seated conflicts of interest between the countries during a phone call with Canadian Prime Minister Mark Carney. "This move ... will put additional pressure on Canada's government to sort through trade frictions with China," said Trivium China agriculture analyst Even Rogers Pay. Canada's trade, agriculture and prime minister's office did not immediately respond to request for comment. Canada has imposed tariffs on Chinese electric vehicles, steel and aluminium. Separately, China also launched an anti-dumping investigation into Canadian pea starch and imposed provisional duties on imports of halogenated butyl rubber, according to ministry statements. Replacing millions of tons of Canadian canola is likely to be difficult at short notice, analysts say. China uses imported canola to make animal feed for its aquaculture sector, as well as for cooking oil. The move provides an opportunity for Australia, which looks set to regain access to the Chinese market with test cargoes this year after a years-long freeze in the trade, Pay said. Australia, the second-largest canola exporter, has been shut out of the Chinese market since 2020 due mainly to Chinese rules to stop the spread of fungal plant disease. However, even if Australian imports increase, "fully replacing Canadian canola will be very difficult unless import demand drops sharply," said Donatas Jankauskas, an analyst with commodity data firm CM Navigator. Davison said his industry believes China will need Canada's canola to meet the sort of demand it has experienced in recent years. "I think the expectation would be that they could not meet those needs with a quality of a product and the volume that we provide," Davison said. Canadian farmers are about to begin harvesting canola and will not be happy to see prices plunge, Canadian Canola Growers Association president Rick White said. As long as the prohibitive duty is there farmers face suppressed prices. "It's going to certainly have a damping effect on price for farmers and they're going to be stuck with that," White said. China has announced preliminary anti-dumping duties on Canadian canola imports in a new escalation in the year-long trade dispute that began with Canada's imposition of tariffs on Chinese electric vehicle imports last August. The provisional rate will be set at 75.8 per cent, effective from Thursday, the Ministry of Commerce said in a statement. Canola Council of Canada president Chris Davison said that rate makes the Chinese market effectively closed for Canadian canola, to which Canada exported about C$5 billion ($A5.60 billion) of the oilseed crop in 2024. ICE November canola futures fell as much as 6.5 per cent to a four-month low after the announcement. "This really came as a surprise and a shock," trader Tony Tryhuk of RBC Dominion Securities said. China, the world's largest importer of canola which is also known as rapeseed, sources nearly all its supplies of the product from Canada. The steep duties would likely all but end imports if they are maintained. "This is huge. Who will pay a 75 per cent deposit to bring Canadian canola to China? It is like telling Canada that we don't need your canola, thank you very much," one Singapore-based oilseed trader said. China imposed tariffs on canola oil and meal in March. Canada is now in a trade conflict with the world's two largest economies, as it also faces tariffs on goods from the United States. Canada's number one canola market is the US, followed by China. China's Ministry of Commerce said an anti-dumping probe launched in September 2024 had found that Canada's agricultural sector - particularly the canola industry - had benefited from substantial government subsidies and preferential policies. The Canadian government and canola industry have previously rejected allegations of dumping. The industry believes China's complaint is based on other ongoing trade and political disputes, Davison said. A final ruling could result in a different rate, or overturn Tuesday's decision. The decision marks a shift from the conciliatory tone struck in June when China Premier Li Qiang said there were no deep-seated conflicts of interest between the countries during a phone call with Canadian Prime Minister Mark Carney. "This move ... will put additional pressure on Canada's government to sort through trade frictions with China," said Trivium China agriculture analyst Even Rogers Pay. Canada's trade, agriculture and prime minister's office did not immediately respond to request for comment. Canada has imposed tariffs on Chinese electric vehicles, steel and aluminium. Separately, China also launched an anti-dumping investigation into Canadian pea starch and imposed provisional duties on imports of halogenated butyl rubber, according to ministry statements. Replacing millions of tons of Canadian canola is likely to be difficult at short notice, analysts say. China uses imported canola to make animal feed for its aquaculture sector, as well as for cooking oil. The move provides an opportunity for Australia, which looks set to regain access to the Chinese market with test cargoes this year after a years-long freeze in the trade, Pay said. Australia, the second-largest canola exporter, has been shut out of the Chinese market since 2020 due mainly to Chinese rules to stop the spread of fungal plant disease. However, even if Australian imports increase, "fully replacing Canadian canola will be very difficult unless import demand drops sharply," said Donatas Jankauskas, an analyst with commodity data firm CM Navigator. Davison said his industry believes China will need Canada's canola to meet the sort of demand it has experienced in recent years. "I think the expectation would be that they could not meet those needs with a quality of a product and the volume that we provide," Davison said. Canadian farmers are about to begin harvesting canola and will not be happy to see prices plunge, Canadian Canola Growers Association president Rick White said. As long as the prohibitive duty is there farmers face suppressed prices. "It's going to certainly have a damping effect on price for farmers and they're going to be stuck with that," White said.
Perth Now
5 days ago
- Business
- Perth Now
China duties on Canadian canola may advantage Australia
China has announced preliminary anti-dumping duties on Canadian canola imports in a new escalation in the year-long trade dispute that began with Canada's imposition of tariffs on Chinese electric vehicle imports last August. The provisional rate will be set at 75.8 per cent, effective from Thursday, the Ministry of Commerce said in a statement. Canola Council of Canada president Chris Davison said that rate makes the Chinese market effectively closed for Canadian canola, to which Canada exported about C$5 billion ($A5.60 billion) of the oilseed crop in 2024. ICE November canola futures fell as much as 6.5 per cent to a four-month low after the announcement. "This really came as a surprise and a shock," trader Tony Tryhuk of RBC Dominion Securities said. China, the world's largest importer of canola which is also known as rapeseed, sources nearly all its supplies of the product from Canada. The steep duties would likely all but end imports if they are maintained. "This is huge. Who will pay a 75 per cent deposit to bring Canadian canola to China? It is like telling Canada that we don't need your canola, thank you very much," one Singapore-based oilseed trader said. China imposed tariffs on canola oil and meal in March. Canada is now in a trade conflict with the world's two largest economies, as it also faces tariffs on goods from the United States. Canada's number one canola market is the US, followed by China. China's Ministry of Commerce said an anti-dumping probe launched in September 2024 had found that Canada's agricultural sector - particularly the canola industry - had benefited from substantial government subsidies and preferential policies. The Canadian government and canola industry have previously rejected allegations of dumping. The industry believes China's complaint is based on other ongoing trade and political disputes, Davison said. A final ruling could result in a different rate, or overturn Tuesday's decision. The decision marks a shift from the conciliatory tone struck in June when China Premier Li Qiang said there were no deep-seated conflicts of interest between the countries during a phone call with Canadian Prime Minister Mark Carney. "This move ... will put additional pressure on Canada's government to sort through trade frictions with China," said Trivium China agriculture analyst Even Rogers Pay. Canada's trade, agriculture and prime minister's office did not immediately respond to request for comment. Canada has imposed tariffs on Chinese electric vehicles, steel and aluminium. Separately, China also launched an anti-dumping investigation into Canadian pea starch and imposed provisional duties on imports of halogenated butyl rubber, according to ministry statements. Replacing millions of tons of Canadian canola is likely to be difficult at short notice, analysts say. China uses imported canola to make animal feed for its aquaculture sector, as well as for cooking oil. The move provides an opportunity for Australia, which looks set to regain access to the Chinese market with test cargoes this year after a years-long freeze in the trade, Pay said. Australia, the second-largest canola exporter, has been shut out of the Chinese market since 2020 due mainly to Chinese rules to stop the spread of fungal plant disease. However, even if Australian imports increase, "fully replacing Canadian canola will be very difficult unless import demand drops sharply," said Donatas Jankauskas, an analyst with commodity data firm CM Navigator. Davison said his industry believes China will need Canada's canola to meet the sort of demand it has experienced in recent years. "I think the expectation would be that they could not meet those needs with a quality of a product and the volume that we provide," Davison said. Canadian farmers are about to begin harvesting canola and will not be happy to see prices plunge, Canadian Canola Growers Association president Rick White said. As long as the prohibitive duty is there farmers face suppressed prices. "It's going to certainly have a damping effect on price for farmers and they're going to be stuck with that," White said.
Al Jazeera
5 days ago
- Business
- Al Jazeera
China slaps temporary duties on Canadian canola in ‘gut punch' move
China has announced preliminary anti-dumping duties on Canadian canola imports, a new escalation in the yearlong trade dispute that began with Ottawa's imposition of tariffs on Chinese electric vehicle imports last August. The provisional rate will be set at 75.8 percent, effective from Thursday, the Ministry of Commerce said in a statement on Tuesday. Intercontinetal Exchange (ICE) November canola futures RSX5, the global benchmark for canola trading, fell 6.5 percent to a four-month low after the announcement. 'This really came as a surprise and a shock,' said trader Tony Tryhuk of RBC Dominion Securities. China, the world's largest importer of canola – also known as rapeseed – sources nearly all of its supplies of the product from Canada. The steep duties would likely all but end imports if they are maintained. 'This is huge. Who will pay a 75 percent deposit to bring Canadian canola to China? It is like telling Canada that we don't need your canola, thank you very much,' said one Singapore-based oilseed trader. China's Ministry of Commerce said on Tuesday that an anti-dumping probe launched in September 2024 had found that Canada's agricultural sector – particularly the canola industry – had benefitted from 'substantial' government subsidies and preferential policies. China has until September, when the investigation formally ends, to make a final decision on the duties, though it has the option of extending that deadline by six months. A final ruling could result in a different rate, or overturn Tuesday's decision. The decision marks a shift from the conciliatory tone struck in June when China Premier Li Qiang said there were no deep-seated conflicts of interest between the countries during a phone call with Canadian Prime Minister Mark Carney. 'This move … will put additional pressure on Canada's government to sort through trade frictions with China,' said Trivium China agriculture analyst Even Rogers Pay. Canada's trade, agriculture and the prime minister's office did not immediately respond to request for comment. The Canadian embassy in Beijing did not respond to Reuters' request for comment. China had already imposed tariffs on canola oil and meal in March. Canada is now in a trade conflict with the world's two largest economies, as it also faces tariffs on some goods from the United States. Separately, China also launched an anti-dumping investigation into Canadian pea starch and imposed provisional duties on imports of halogenated butyl rubber, according to ministry statements. 'Extend the losses' Replacing millions of tonnes of Canadian canola is likely to be difficult at short notice, say analysts. China primarily uses imported canola to make animal feed for its aquaculture sector. A separate duty on Canadian canola meal imports in March has already put these supplies at risk. The move provides an opportunity for Australia, which looks set to regain access to the Chinese market with a few test cargoes this year after a years-long freeze in the trade, Pay said. Australia, the second-largest canola exporter, has been shut out of the Chinese market since 2020 due mainly to Chinese rules to stop the spread of fungal plant disease called 'blackleg'. However, even if Australian imports increase, 'fully replacing Canadian canola will be very difficult unless import demand drops sharply,' said Donatas Jankauskas, an analyst with commodity data firm CM Navigator. Commodity funds have a substantial long position in ICE canola futures, traders said, which should add fuel to the selloff fire. 'This will help accelerate their exit of that long and could really extend the losses,' said Tryhuk. Another trader said there was already downward pressure coming into canola prices as Canada's crop is widely believed to be bigger than many previously forecast due to good weather. 'We're just realising we've got a better crop that's about to come off,' said the trader. 'This is a gut punch no one was expecting.' Ventum Financial broker David Derwin said some traders do not know how to take the Chinese move yet, since it is not a final rule. 'Is it a negotiating tactic? Or does China put it in and that's that?' Derwin asked.
