US soybean futures on the Chicago Board of Trade tumbled on Friday in reaction to Argentina repealing its soy export tax hike, traders said. "By revoking the tax, the assumption now is that Argentine bean output will increase and that exports will also increase," said Gavin Maguire, analyst for Iowa Grain.
The controversial tax had sparked a political crisis and paralyzed trade that lasted four months in one of the world's leading soy exporters. The move follows the Argentine Senate rejecting the tax hike in a close vote on Thursday. There was talk that Argentina saw a "big chunk" of soybean sales last night, one Chicago trader said.
August soybeans closed 51 cents per bushel lower at $14.70 - below its 50-day moving average of $14.71-1/2. New-crop November ended 50 down at $14.48. The products were under pressure for the same reasons. August soymeal fell below $400 for the first time since late June, closing $13.10 per ton lower at $396.30
August soyoil ended 1.33 cent lower at 62.09 cents per lb. Volume was moderate. Estimated soybean trade was 152,830 futures and 29,946 options. Soymeal volume was pegged at 59,615 futures and 2,947 options. Soyoil trade was seen at 73,395 futures and 2,516 options. Commodity funds sold 5,000 soybean contracts, 3,000 soymeal and 3,000 soyoil.
This week's sell-off in crude oil, falling nearly 11 percent below $130 a barrel in the spot month, was also bearish. Mix of showers and warm temperatures for the next week across the US Midwest seen beneficial for developing crops, a DTN Meteorlogix forecaster said. Hotter and drier weather a concern for crops in the Delta.