Soybeans, wheat and corn fall on Argentine export tax cuts

Wheat and corn also fell as Argentina’s tax reductions could also spark more exports and on expectations U.S. President Donald Trump’s administration may soon impose trade tariffs.

Chicago soybeans fell on Monday as Argentina’s cut in grains export taxes raised expectations of larger shipments from the South American producer in competition to U.S. supplies.

Wheat and corn also fell as Argentina’s tax reductions could also spark more exports and on expectations U.S. President Donald Trump’s administration may soon impose trade tariffs.

Chicago Board of Trade most-active soybeans fell 0.7% to $10.47-1/2 a bushel at 1203 GMT after earlier hitting $10.40 a bushel, the lowest since Jan. 21.

Wheat fell 0.5% to $5.41 a bushel, corn fell 0.9% to $4.82 a bushel.

Argentina’s unexpected move could trigger a surge in its exports, while longer-term it could boost production.

“The announcement of lower Argentine export taxes continues to weaken wheat, corn and soybeans today as potentially this will bring more competition in export markets to U.S. soybeans and grains,” said Matt Ammermann, StoneX commodity risk manager.

“Argentine wheat is already just about the cheapest in the world and any move which brings more into the global market will be bearish. This is currently overriding concern about frost damage to U.S. wheat.”

Argentina is the world’s top exporter of processed soy oil and meal, the No. 3 exporter of corn and a major producer of wheat.

Falls in wheat prices were limited by fears cold weather may have killed as much as 15% of the U.S. winter wheat crop in U.S grainbelts.

“There are also other bearish factors today including decent rains in Argentina and Brazil which are favourable for soybean crops,” Ammermann said.

“Markets rose last week on relief that the new Trump administration did not announce immediate tariffs on imports which could spark trade wars hitting agricultural commodities.”

“But there is a growing impression that tariffs will be imposed at some time which is another bearish factor today.”

Tags: exports, corn, Brazil, prices, soybeans, wheat, U.S., Argentina, tax, tariffs