MercoPress. South Atlantic News Agency

Argentina's temporarily dropping export duties shakes CBOT

A total of 86% of the 19.6 million tons that reached the US$7 billion ceiling by Thursday were registered by seven export companies. And that had an impact on the grain market

The government of Argentina temporarily implemented a zero export duty quota on grain shipments (up to a US$7 billion ceiling), which was exhausted by exporters in just three days.

The sudden surge of Argentine supply caused the Chicago Board of Trade (CBOT) soybean price to fall by US$5 per ton and drop by 1.15% over the week.

The tax-free Argentine soybeans led to Chinese buyers ordering around 40 ships of Argentine soybeans, according to Reuters reports. This commercial activity is seen as further excluding US soybeans from the Chinese market amid ongoing trade tensions, even as the US harvest is underway.

Prices for other grains remained low. Corn and wheat prices stayed at five-year lows in Chicago, though Uruguay's corn price remains favorable for local farmers. Rapeseed also saw a weekly decline of US$5 per ton in the European market.

Soybean prices in Uruguay traded lower, while winter crops like wheat and barley saw little advance sales due to prices being below the values budgeted by producers.