Canada says China importer to buy more canola oil

The Canadian government announced China''s state-owned Sinograin will increase Canadian canola oil imports next year, according to Reuters. In a statement the Canadian government said Sinograin, plans to import 350,000 metric tons of Canadian canola oil in 2010, an increase of 200,000 metric tons. But a visit by Prime Minister Stephen Harper and two Cabinet ministers did not lead to any easing of Chinese restrictions against canola seed. Canada is the world''s largest exporter of canola, a variant of rapeseed that is mainly processed for use in cooking oil and biofuel. China was its top export market for canola seed last year and traders watch shifts in Chinese demand closely. The Canola Council of Canada estimates the increased sales to Sinograin, one of several Chinese importers of Canadian canola oil, will be worth C$180 million. While China is a major market for Canadian canola and its oil, its demand varies widely from year to year. China since November 15 has restricted Canadian canola with blackleg disease to lesser-used ports away from China''s rapeseed-growing areas. Blackleg is a disease caused by a fungus that can kill the canola plant. It is commonly found on Canadian canola and is also present in other major rapeseed growing areas, including China.