A trade spat with China that’s left Canada with little access to its biggest canola market is showing signs of easing as the Asian nation looks to stock up on edible oil.

The two countries are having “positive discussions” to try and find a way to normalize canola trade, according to a Canadian government official, who asked not to be identified. While the licenses of two major Canadian shippers remain suspended, Canadian and Chinese government officials had a call to discuss canola trade on March 30, according to industry group Canola Council of Canada.

Canada is the top grower and exporter of the oilseed that’s used in everything from deep-frying to salad dressings. China shunned imports of the oilseed citing pest and quarantine concerns in 2019, although the move was widely seen in Canada as a possible retaliation over the arrest of a senior Huawei Technologies Co. executive. The disruption has resulted in an estimated $1 billion in lost revenue, according to the Canola Council of Canada.

“It’s got to be a good sign,” said Tony Tryhuk, the branch manager of RBC Dominion Securities office in Winnipeg, Manitoba. “Lots of different things are slowing down exports out of South America so clearly they’re running low on inventories of protein and oil.”

China canceled the licenses of Richardson International and Glencore Plc’s Canadian grain unit Viterra last year, which account for about 70% of the nation’s canola exports to the Asian nation.

While there was some uncertainty regarding the ability of smaller firms to ship canola with the expiration of an agreement struck in 2016, China will continue to accept these shipments from Canada, according to the Canadian government official.

Richardson declined to comment. Viterra didn’t immediately respond to a request for comment.

Canola futures touched a six-week high on ICE Futures in New York.