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Argentina's Agriculture Minister Luis Basterra told Reuters the government does not plan to raise grains export taxes, despite fiscal pressure from a coronavirus-driven recession and a complex sovereign bond restructuring. Current export taxes are 12% on wheat and corn and 33% on soybeans and soymeal.
Avoiding an export tax hike keeps Argentine wheat, corn and soy exports competitive, limiting upward pressure on world prices from a supply-side policy shock. Farmer uncertainty could still slow planting and sales.
reuters.comHugh BronsteinJul 15, 2020After 137 past neutral policy events, Wheat (SRW) moved a median -0.4% over 5 sessions (43% higher; middle half -1.9% to +1.2%), and +0.3% over 20.
After 439 past neutral policy events, Corn moved a median +0.1% over 5 sessions (51% higher; middle half -1.3% to +1.2%), and +1.1% over 20.
After 554 past neutral policy events, Soybeans moved a median +0.0% over 5 sessions (51% higher; middle half -1.4% to +1.6%), and +0.6% over 20.
After 206 past neutral policy events, Soybean Meal moved a median -0.4% over 5 sessions (44% higher; middle half -2.3% to +1.8%), and -0.7% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
