The recent rally in US corn prices has seen the European Union reassess its grain duties, slashing its tariff to €0.56/mt from €5.61/mt for corn and sorghum. The run up in corn prices driven by a strong demand and recent surge seen across the agriculture space – has been enough to tip the balance on the calculation behind its import duty. EU sets its corn tariff based on prices it observes in the US physical market, with freight to Rotterdam and the euro/dollar exchange rate deducted from a minimum intervention price.