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Argentina's agribusiness sector is cited as a key driver of economic recovery, with soybean and grain exports the main source of foreign currency. The article notes the sector has absorbed a drought that hit last year's harvest and is expected to post a record 2018 grain yield.
It also describes the government's reversal on export taxes, including a 10% tax on exporters' earnings.
Export taxes reduce farm-gate returns and can shift planting and selling decisions, affecting Argentine meal and oil export flows. A record 2018 crop would add supply to world markets, a bearish factor for soy products.
digitaljournal.comAFPOct 31, 2018After 222 past bearish policy events, SBM moved a median -0.3% over 5 sessions (45% higher; middle half -2.1% to +1.2%), and -0.6% over 20.
After 351 past bearish policy events, SBO moved a median -0.0% over 5 sessions (49% higher; middle half -1.7% to +1.8%), and -0.2% over 20.
After 310 past bearish policy events, CORN moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.6% over 20.
After 369 past bearish policy events, SOY moved a median -0.2% over 5 sessions (46% higher; middle half -1.7% to +1.8%), 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.
