Chicago Close: Cut in Argentine Grain Export Tax Weighs Again

Jan 29, 2025

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.

Click here to see more...

Video: Not only is corn getting sweatier, it's getting smarter

Over the past several weeks, much of the U.S. Midwest has experienced prolonged episodes of extreme heat, a trend also observed in other major corn-producing regions of North America such as eastern South Dakota, southern Ontario, and parts of Kansas and Missouri. These high-temperature events can place significant physiological stress on maize (Zea mays L.), which is cultivated on approximately 90 million acres across the United States, with leading production in Iowa, Illinois, Nebraska, and Minnesota. Like all maize, Bayer’s PRECEON™ Smart Corn System is subject to transpiration-driven water loss under high heat. However, this system incorporates agronomic traits designed to improve standability through enhanced stalk strength, thereby reducing lodging risk during stress conditions. Furthermore, the system supports precision agriculture practices by enabling more targeted fertilizer and crop protection applications. This approach not only helps to optimize input efficiency but also contributes to maintaining or increasing yield potential under variable environmental stresses such as heat waves, which are becoming more frequent in corn belt and fringe production regions.