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The European Commission reinstated import duties on maize, sorghum and rye, set at €5.27 per tonne, after they had been zero since March 2018. The duty is triggered automatically by a gap between the EU reference price and the US maize price at Rotterdam, which fell to €149.84 per tonne from €162.24 a year earlier.
Lower oil prices have cut US ethanol demand and freight costs, and a record global maize harvest is expected in 2020-21.
Duties on imports reduce EU demand for sorghum and maize from world suppliers, adding pressure to already weak prices. The effect is modest at €5.27 per tonne but adds to bearish global feedgrain supply.
world-grain.comHolly Demaree-SaddlerApr 30, 2020After 310 past bearish policy events, CORN moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.6% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
