Argentina's export duty cuts and China's worsening economy will add pressure on soybean, corn and wheat prices

Published Jan 27, 2025

Tridge summary

World prices for oil and agricultural products, including oil and agricultural futures in Chicago, Kansas City, Minneapolis, Paris Euronext, wheat, and corn, have experienced a decline due to several factors. These include concerns about the Chinese economy, Argentina's decision to reduce export duties on various goods, and the US starting tariff wars. Argentina is facing potential harvest forecast cuts due to weather conditions, while China's manufacturing and non-manufacturing PMI indicators have shown contraction, impacting demand for US soybeans. Brazil has emerged as China's top soybean supplier, replacing the US, which has seen a drop in its import share.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

On Friday, world prices for oil and agricultural products fell amid news about the Chinese economy, a reduction in export duties in Argentina and the start of new tariff wars by the United States. March futures fell: by 1.9% to $199.9/t for soft winter SRW wheat in Chicago, by 2% to $205.6/t for hard winter HRW wheat in Kansas City, by 1.6% to $218.7/t for hard spring HRS wheat in Minneapolis, by 0.7% to $191.9/t for corn in Chicago, by 0.95 to $387.9/t for soybeans in Chicago. On the Paris Euronext, March futures also fell: for wheat - by 1.9% to €226/t or $236.4/t, for corn - by 1% to €213.75/t or $223.6/t. To support the export industry, which is critical to the economy, the Argentine authorities announced a reduction in duties on soybean exports from 33% to 26%, on soybean meal and oil - from 31% to 24.5%, on corn, wheat, barley and sorghum - from 12% to 9.5% for the period from January 27 to June 30, writes Grain Trade. Argentina is the world's largest exporter of ...

Source: Oilworld