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Argentine soybean crops have been badly damaged by drought, with experts saying the season is effectively lost. Argentine soybean exports face a 28.5 percent tax, so the drought also threatens government revenue as President Mauricio Macri seeks re-election next year while cutting the budget deficit.
Argentina is a major soymeal and soyoil exporter, so a sharply smaller crop tightens global soybean product supplies and supports prices for soybean meal and oil used in feed. The export tax losses could also pressure Argentine policy, adding uncertainty.
reuters.comHugh BronsteinMar 12, 2018After 1,079 past bullish weather events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +2.0%), and +0.9% over 20.
After 453 past bullish weather events, Soybean Meal moved a median +0.5% over 5 sessions (55% higher; middle half -1.6% to +2.7%), and +0.5% over 20.
After 184 past bullish weather events, Soybean Oil moved a median +0.3% over 5 sessions (53% higher; middle half -1.9% to +2.4%), 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.
