GRAINS-Soybeans and corn ease from highs as Argentina cuts export taxes
PARIS/BEIJING, Jan 24 (Reuters) - U.S. soybean and corn futures fell on Friday, moving back from multi-month highs as Argentina's announcement of reductions to grain export taxes took attention away from harsh weather in the country.
Chicago wheat also eased as the planned tax cut by Argentina was seen encouraging farmers to sell more crop for export.
The most-active corn contract on the Chicago Board of Trade (CBOT) Cv1 was down 1.1% at $4.84-1/4 a bushel by 1233 GMT, after hitting its highest in more than a year in the previous session.
CBOT soybeans Sv1 fell 1.3% to $10.51-1/2 a bushel, following a six-month peak on Thursday, while CBOT wheat Wv1 fell 1.1% to $5.47-3/4 a bushel to move away from a six-week top reached on Wednesday.
Agricultural powerhouse Argentina will lower taxes on its grains exports from Monday until June, delivering on a campaign promise from libertarian President Javier Milei.
Argentina is the world's top exporter of processed soy oil and meal, the No. 3 for corn and a major producer of wheat.
"It's nearly all about the Argentine tax move today," a European trader said. "This will have most impact on corn exports and soy crush/meal exports."
Local growers have faced hot weather and insufficient rainfall in recent weeks that have hurt harvest prospects and contributed to rising international corn and soybean prices.
On Thursday, the Buenos Aires Grains Exchange cut its forecasts for Argentina's 2024/25 soybean and corn crops by 1 million metric tons each to 49.6 million tons and 49 million tons, respectively.
However, in neighbouring Brazil, the 2024/2025 soybean crop is expected to reach a record 170.7 million tons, hEDGEpoint Global Markets said on Thursday, offsetting some concerns over the impact of production cuts in Argentina on global supply.
Market players are still cautious 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.
Grain markets are also awaiting an update on international demand from weekly U.S. export sales figures later on Friday. USDA/EST
Prices at 1233 GMT | |||
Last | Change | Pct Move | |
CBOT wheat Wv1 | 547.75 | -6.25 | -1.13 |
CBOT corn Cv1 | 484.25 | -5.50 | -1.12 |
CBOT soy Sv1 | 1051.50 | -14.00 | -1.31 |
Paris wheat BL2H5 | 227.75 | -2.50 | -1.09 |
Paris maize EMAc1 | 214.50 | -1.50 | -0.69 |
Paris rapeseed COMc1 | 522.75 | -3.50 | -0.67 |
WTI crude oil CLc1 | 75.08 | 0.46 | 0.62 |
Euro/dlr EUR= | 1.05 | 0.01 | 0.65 |
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per metric ton | |||
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