The EU recently imposed retaliatory tariffs against the U.S., greatly affecting U.S. corn imports. This has resulted in a change of trade dynamics, as Canadian corn exports to the bloc are up 85 percent year on year. Exports are on pace to reach 1.2 MMT, the highest since 2013/14. Last year, Canada signed a free trade agreement with the EU.
Europe is not a major destination for U.S. corn due partly to issues involving the use of biotech crops in the EU. The U.S. has shipped 1.9 MMT of corn to the EU so far this season compared to 10.9 MMT to Japan and 11.9 MMT to Mexico.
Source: Reuters, www.123rf.com
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