MercoPress. South Atlantic News Agency

Grain and soy prices yield on US good weather

Wheat, corn and soybean prices eased at the start of the week on news of favorable crop weather in the US and Europe along with Argentina's decision to repeal the export tax hike.

Dealers said soybeans could decline further as supplies are likely to improve after the export tax issue gets resolved in Argentina, the world's third-largest exporter. Argentine President Cristina Fernandez de Kirchner repealed a tax hike on soy exports on Friday after the Senate rejected it, handing her a stinging defeat in a long conflict with angry farmers. Corn prices hit record highs in late June as the worst flooding in 15 years wiped out big patches of corn area in the US but weather in July turned unusually favorable for corn and soy development. High prices have encouraged farmers to plant soybeans in fields where they have recently harvested winter wheat. Soybeans that are planted late, however, run the risk of frost damage. Wheat also fell with the US winter wheat harvest around two-thirds complete and as harvesting in France begins to gather pace with early yields average which is encouraging for the rest of the crop.