Corn, wheat, and soybean futures closed weaker on Monday, with pressure once again coming from lower Argentina grain export taxes.
The Argentine government announced last week that it was trimming grain export taxes, a move that is expected to incentivize producers in that country to sell and increase competition in international markets for American supplies. The tax cut officially took effect today and is expected to run until June. The long-term implications of the tax cut could also lead to rising Argentine production.
Reports today said Argentine wheat is already among the cheapest in the world, with the tax cut likely to bring even more to market.
Much-needed rain in some Argentine production areas over the weekend added to the downside in corn and soybeans, although crops in much of the country still need more moisture. “Concern is already high for a reduction in yields due to the lack of rain,” World Weather said in a report today.
Meanwhile, rainfall is expected to return to portions of Brazil this week, further slowing an already delayed soybean harvest.
The downside in wheat was limited by reports that as much as 15% of the US winter wheat crop could have been damaged by last week’s outbreak of frigid weather.
March corn fell 4 ½ cents to $4.82, and new-crop December was down 2 ¾ cents at $4.58 ¼. March beans dropped 10 ¾ cents to $10.45, and November was down 5 ½ cents at $10.43 ¼.
March Chicago wheat lost 8 ½ cents to $5.35 ½, March Kansas City was down 6 ¼ cents at $5.53 ¼, and March Minneapolis closed 9 ½ cents lower at $5.85 ¾.
