Soybean prices rise: Argentina dramatically cuts export taxes!

Soybean prices rise: Argentina dramatically cuts export taxes!

Today's trading situation on the global raw materials market shows a mixed development, as reported by the Vietnam Commodity Exchange (MXV). The MXV index rose 0.2% to 2,217 points, marking its third straight increase. All seven commodities recorded price increases at the same time as crude oil prices go through a period of weakness.

On May 21, 2025, the positive sentiment in the agricultural market continued, particularly with soybean prices increasing by 0.93% to $390 per ton. This increase is mainly supported by concerns about falling supplies in major producing countries. The situation is further influenced by Argentina's decision not to extend tax breaks for corn, soybeans and related products.

Important tax changes in Argentina

From July 1, 2025, the export tax on raw soybeans will increase to 33%, while the taxes on soybean meal and soybean oil will be at 31%. These measures could have a significant impact on global supplies, as Argentina is considered one of the largest exporters of soy. Latest reports also show that Argentina will cut export taxes on soybeans from 33% to 26% starting next Monday, while tariffs on soybean oil and soymeal will be reduced from 31% to 24.5%. These steps aim to improve Argentina's competitiveness in the international market.

While Argentina looks to consolidate its market position, the US is showing signs of potential planting delays with cool and wet conditions in the Midwest. Significant rainfall is forecast in Missouri next week, while the overall weather situation in the Midwest remains drier. These climatic factors could increase additional supply concerns and further support the rise in soybean prices.

Impact on rapeseed and wheat prices

In parallel with developments in the soy market, rapeseed prices are falling due to falling soy prices. The Euronext rapeseed contract due in February 2025 fell by 2 euros per ton to 524.25 euros, while the May 2025 rapeseed contract fell by 2.75 euros per ton to 525.75 euros. Regarding wheat production, analysts keep the forecast for the Russian wheat harvest in 2025 at 78.7 million tons, which is a decrease compared to 2024.

The current weather situation in Russia is currently mild, which does not mean any acute problems for the wheat harvest, but could increase the risk of frost damage to the plants in the long term. About 37% of wheat crops in Russia were in poor condition in November, the highest level in at least 20 years.

Overall, today's market analysis shows that agricultural raw materials move in a dynamic environment that is shaped by political decisions, climatic challenges and international market conditions. Developments in Argentina and the USA are being monitored particularly closely.