The EU has increased an import duty it placed on all maize, sorghum and rye imported from outside of the region to €10.40/t.
On April 27, the EU’s automatic mechanism for calculating import duties was triggered due to sustained low prices for maize.
The original import duty was set at €5.27/t. However, in a statement from the European Commission, it said that sustained low prices for maize worldwide and ample supply have led to a second update of import duties this week.
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Falling prices
The revised tariff is based on the difference between a European reference price and the world benchmark for maize – the US price, calculated as CIF maize price (ie cost, insurance and freight included) at the port of Rotterdam.
The US maize price is declining significantly due to the collapse of oil prices, which led to a drop in bioethanol fuel demand in the US (maize being the main raw material for ethanol production). In parallel, a record maize harvest is expected in 2020/2021 at a global level.
The freight costs also have fallen due to a drop in energy prices. As a result of the combination of these effects, US CIF market prices for maize at the port of Rotterdam fell and stood at €146.63/t.
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The EU has increased an import duty it placed on all maize, sorghum and rye imported from outside of the region to €10.40/t.
On April 27, the EU’s automatic mechanism for calculating import duties was triggered due to sustained low prices for maize.
The original import duty was set at €5.27/t. However, in a statement from the European Commission, it said that sustained low prices for maize worldwide and ample supply have led to a second update of import duties this week.
Falling prices
The revised tariff is based on the difference between a European reference price and the world benchmark for maize – the US price, calculated as CIF maize price (ie cost, insurance and freight included) at the port of Rotterdam.
The US maize price is declining significantly due to the collapse of oil prices, which led to a drop in bioethanol fuel demand in the US (maize being the main raw material for ethanol production). In parallel, a record maize harvest is expected in 2020/2021 at a global level.
The freight costs also have fallen due to a drop in energy prices. As a result of the combination of these effects, US CIF market prices for maize at the port of Rotterdam fell and stood at €146.63/t.
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