CHICAGO: US 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 US wheat export sales also weighed on prices.
The most-active corn contract on the Chicago Board of Trade (CBOT) was down 1 cent to $4.88-3/4 a bushel by 1635 GMT (10:35 am CST), after hitting its highest in over a year on Thursday. CBOT soybeans fell 4-3/4 cents to $10.60-3/4 a bushel, after hovering near a six-month peak on Thursday, while CBOT wheat fell 8-3/4 cents to $5.45-1/4 a bushel.
Agricultural powerhouse Argentina said after trading ended on Thursday it would lower taxes on its grains 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.
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