SINGAPORE: Chicago soybeans slid for a second straight session on Monday to their lowest in almost one week, as Argentina’s decision to lower grain export taxes raised expectations of higher supplies form the South American country.

Wheat fell more than 1%, although the decline was limited by cold weather causing damage to the US winter crop, while corn slid for a second straight session. “The market is expecting higher exports from Argentina, which is bearish for prices,” said one Southeast Asia-based trader. “Prices had earlier rallied on worries over adverse weather, the market is now giving up some of those gains.”

The most-active soybean contract on the Chicago Board of Trade (CBOT) fell 1.4% to $10.41-1/4 a bushel by 0231 GMT. Earlier in the session it slid to $10.40 a bushel, the lowest since Jan. 21. Wheat gave up 1% to $5.38-3/4 a bushel and corn dropped 1.2% to $4.80-3/4 a bushel. Argentina’s unexpected cuts to grains export taxes will likely trigger a surge in shipments from the country, analysts said, while longer-term it could boost production in the South American country, a major supplier of soy, corn and wheat.

Higher supplies of agricultural products from Argentina are likely to boost competition in the global market for rival exporters, including the United States. Argentina is the world’s top exporter of processed soy oil and meal, the No. 3 exporter of corn and a major producer of wheat.