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A USDA Foreign Agricultural Service report expects Argentina to plant 17.5 million hectares of soybeans in 2020-21, down 500,000 hectares, as higher export taxes erode margins and farmers shift to sunflower, wheat, corn and other crops. Soybean production is pegged at 51 million tonnes, with whole bean exports projected to rise 38.5% to 9 million tonnes.
Higher Argentine export taxes cut soybean profitability and acreage, tightening the export outlook for soybeans and meal. Reduced Argentine supply supports meal and oil prices while the shift to other crops adds some offsetting supply.
world-grain.comSusan ReidyApr 24, 2020After 356 past bullish policy events, Soybeans moved a median +0.1% over 5 sessions (53% higher; middle half -1.2% to +2.3%), and -0.9% over 20.
After 172 past bullish policy events, Soybean Meal moved a median +0.0% over 5 sessions (50% higher; middle half -1.5% to +1.7%), and -0.8% 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.
