As of today, an EU import duty of € 5.27 / t applies to corn. Many market participants had expected the levy to be introduced as a mechanism is now in place to impose an import tariff if average prices of US corn imported into the EU fall below the EU minimum price for 10 days.
The same rule applies to rye and millet. Corn prices in the US have plummeted as demand for ethanol made from corn has plummeted.
The anticipation of an import duty had already led to the fact that the demand for residual quantities of duty-exempt imports on corn had picked up.
The duty-free quota for corn from Ukraine will be around 1.2 million tons in 2020; for maize from other origins, the first half of the annual quota is 139,000 tonnes.
After the rolling 10-day import price triggered the EU import duty, corn prices in this country rose again above the EU minimum price.
Source
Hansa Terminhandel GmbH
