China, a major consumer of vegetable oils, recently bought a small volume of rapeseed oil from Europe for the first time in two years as it was cheaper than domestic prices, the China National Grain and Oils Information Centre (CNGOIC) said. Chinese buyers have stepped up rapeseed oil imports this year to cash in on the favourable price difference with domestic prices soaring on the back of a government stockpiling policy designed to boost farmer incomes.
China bought 50,000 tonnes of the edible oil at a price of about $1,220 to $1,240 per tonne, including cost, insurance and freight, for delivery in July and August, the CNGOIC said in a report posted on its website. (www.grain.gov.cn) The centre did not identify the country, but added that the deal with Europe was the first since 2010, when China imported a total of 20,000 tonnes from Ukraine and Russia.
China's rapeseed oil imports in the first quarter this year jumped 69 percent on the year to 387,234 tonnes, the majority of which came from Canada, official customs data showed. The most-active domestic rapeseed oil futures reached an almost two-month top of 9,930 yuan ($1,600) per tonne on Friday as the market expected Beijing to raise its purchase price for the new crop due in June, traders said. The government has also suspended weekly sales of stockpiled rapeseed oil that began in early March, with prices still too high.
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