Corn and soybean prices fell sharply as Argentina significantly reduced export tariffs.

The prices of corn and soybean futures have fallen due to market expectations that Argentina will increase sales after lowering export tariffs. Argentine President Javier Milei announced on Saturday that the export tariff for soybeans will be reduced from 33% to 26%, and the export tariff for corn will be lowered from 12% to 9.5%. The reason for implementing this policy is to appease domestic farmers who are hoping for Milei to fulfill his promises of free trade. The reduction in tariffs is expected to help Argentina increase exports, further intensifying market competition in a situation where global supply is already ample, thereby putting greater pressure on American farmers. Soybean and corn prices in Chicago have dropped to their lowest levels in nearly two weeks. Additionally, analysts at Argus Media mentioned in a report that the "strong production expectations" for American corn and soybeans are another major driver of the price decline.