Corn, soybean, and wheat futures all declined on Friday on the news a day earlier that Argentina plans to cut its grain export taxes.
The move to cut export taxes – which will take effect Monday and run until June – is expected to incentivize Argentine producers to open their bins, as well as increase the competitiveness of Argentine supplies in the international market. The export tax on soybeans will drop to 26% from 33% and on derivatives of the oilseed to 24.5% from 31%. For corn, it will drop to 9.5% from 12%.
On the other hand, the Buenos Aires Grain Exchange on Thursday pegged the Argentina soybean crop at 49.6 million tons, down 1 million from its previous estimate and further below the official USDA forecast of 52 million. The exchange also lowered its corn estimate by 1 million tonnes to 49 million, versus the USDA projection of 51 million.
The USDA’s weekly export sales report, delayed from Thursday by the Martin Luther King holiday on Monday, showed bookings of US soybeans for the week ended Jan. 16 at 1.49 million tonnes, near the high end of trade expectations. Corn export sales were also at the high end of expectations at 1.66 million tonnes.
March and December corn each closed 3 ¼ cents lower at $4.86 ½, and $461, respectively. March beans lost 9 ¾ cents to $10.55 ¾, and November was down 4 ½ cents to $10.48 ¾.
Wheat futures declined with the losses in corn and soybeans. March Chicago wheat dropped a dime to $5.44, March Kansas City closed down 11 ¼ cents at $5.59 ½, and March Minneapolis fell 9 ¼ cents to $5.95 ¼.
