BRUSSELS, BELGIUM — The European Commission has updated the import duty for maize, sorghum and rye to €0 per tonne as a reduced forecast for the US 2020-21 maize harvest buoys US maize prices.
According to the European Commission, the import duty for the three commodities is based on the difference between a European reference price and the world benchmark for maize — the US price, calculated as cif maize price (cost, insurance and freight included) at the port of Rotterdam.
The latest import change was triggered by various factors that boosted US maize prices. On Aug. 10, a derecho storm swept through the US state of Iowa, causing damage to the country’s leading state maize producer. The European Commission also noted hot and dry weather throughout the US Midwest is also forecast to lead to a decrease in the 2020-21 US maize harvest.
This is not the first update to the EU’s import duty on maize, sorghum and rye. Near the end of April, US cif maize prices plummeted on the slip in bioethanol demand in the United States due to the coronavirus (COVID-19) outbreak. On Aug. 12, the European Commission set the import duty on maize, sorghum and rye to €5.48 per tonne due to both the US price or maize and the US dollar against the falling euro.
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