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Argentina's main farm groups announced a four-day sales strike to protest an increase in export levies on soybeans, soymeal and soyoil from 30% to 33%. The tax rise was part of the government's plan to manage about $100 billion in debt.
Analysts also reported dryness starting to hurt soybean yields as harvest approached.
A halt in farmer selling tightens near-term soybean and meal availability for export, supporting world prices. The higher levy also cuts crushers' margins and export competitiveness, adding medium-term uncertainty for Argentine supply.
reuters.comHugh BronsteinMar 6, 2020After 356 past bullish policy events, SOY 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, SBM moved a median +0.0% over 5 sessions (50% higher; middle half -1.5% to +1.7%), and -0.8% over 20.
After 842 past bullish policy events, SBO moved a median +0.2% over 5 sessions (52% higher; middle half -1.6% to +2.1%), and -0.5% 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.
