Chicago | Reuters—U.S. soybean and corn futures on Friday fell from multi-month highs after Argentina said it would lower grain export taxes, fueling expectations the United States will face tougher competition for sales on the global market.
Wheat futures also eased as the tax cut was seen encouraging Argentine farmers to sell more crops, while lower-than-expected U.S. wheat export sales also weighed on prices.
The most-active corn contract on the Chicago Board of Trade (CBOT) Cv1 settled down 3-1/4 cents at $4.86-1/2 a bushel after hitting its highest in over a year on Thursday.
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CBOT soybeans Sv1 settled down 9-3/4 cents at $10.55-3/4, after hovering near a six-month peak on Thursday, while CBOT wheat Wv1 settled down 10 cents at $5.44 a bushel.
Agricultural powerhouse Argentina said after trading ended on Thursday it would lower taxes on its grain exports from Monday until June, spanning Argentina’s prime harvest time for corn and soybeans.
“This will keep Argentina as a significant export competitor,” Randy Place, analyst at Hightower Report, said.
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. Its farmers have faced hot, dry weather in recent weeks that hurt harvest prospects and contributed to rising international corn and soybean prices.
The Buenos Aires Grains Exchange cut estimated yields for soybean and corn crops on Thursday. Light rains forecast over swathes of the country in the coming weeks are not expected to significantly slash dryness, analysts said.
In neighboring Brazil, the 2024-25 soybean crop is expected to reach a record high, offsetting some concerns over the impact of production cuts in Argentina on global supply.
Market players are also still looking for signals of U.S. President Donald Trump’s plans to impose tariffs on major agriculture trading partners, including China and Canada, which could reshape global trade flows.
“It adds volatility to the market,” Place said.
U.S. wheat export sales in the week ended Jan. 16 were 164,800 metric tons for 2024-25, down 52% from the prior four-week average, according to the U.S. Department of Agriculture.
—Additional reporting by Gus Trompiz in Paris and Mei Mei Chu in Beijing
