Following a reduced forecast of the 2020/21 maize harvest that led to an increase of US maize prices, the import duty for maize, sorghum and rye in the European Union is now set at €0 per tonne as of 27 August 2020.
The revised tariff, published on 27 August 2020 in the EU Official Journal, is calculated based on the difference between the European reference price and the world benchmark for maize (i.e. the US cif price – cost, insurance and freight included – at the port of Rotterdam), in line with the rule set in the EU regulation 642/2010.
The tariff for maize, sorghum and rye has been updated multiple times in the past months, starting with the import duty increasing from €0 to €5.27 per tonne in the end of April due to a significant drop of the US cif maize price, mainly as a result of the collapse of bioethanol demand in the US. The last update set it at €5.48 per tonne on 12 August 2020, again due to both the US price for maize and the US dollar against the euro falling.
The US maize prices increased again due to various factors including the damages to maize caused by the 10 August storm in the US Midwest as well as dry and hot weather, both leading to a decrease of the maize harvest forecast for 2020/21 in the US.
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