Argentina's new president is holding up his promise to agriculture. President Mauricio Macri eliminated export taxes on ag goods like beef, wheat, and corn. He also cut a soybean tariff.
That's affecting the grain markets according to Don Roose with U.S. Commodities, "The grain market's having a bit of a setback here today and really it's about world competition and on rallies we continue to to see a pickup in farmer movement but Argentina did eliminate the export tax: 20 percent tax on corn, 23 percent tax on wheat and [they] lowered the export tax on soybeans down five percent to 30 percent."
Roose says, "So world competition is pressing the market along with support on breaks continues to come from positions squaring ahead of the year end and this is the last full week of trading of the year."
Export tariffs in Argentina were increased in the last decade. The country estimates farmers held onto billions worth of ag products while protesting the taxes.