Argentina cuts wheat, barley export taxes as global corn trade faces pressure
The tax cuts come as Argentina raises corn output forecasts and adds pressure to Ukrainian exports in key global markets.
ARGENTINA – Argentina will lower export taxes on wheat and barley from 7.5% to 5.5% starting in June 2026, as the government moves to support farm exports and increase the country’s share in global grain trade.
Argentine President Javier Milei announced the plan on May 21. He also said soybean export taxes will fall from January 2027 by 0.25 to 0.5 percentage points.
The government said the measures form part of its plan to reduce taxes and support export growth across the economy. Milei also pointed to possible tax cuts for other sectors, including automotive and petrochemicals, although officials have not yet shared full details.
The move comes as Argentina raises expectations for corn production and export volumes. The Buenos Aires Grain Exchange recently lifted its corn production forecast from 61 million metric tons to 64 million metric tons. The extra supply could increase pressure in global markets during the June to August period.
That outlook has already started to affect Ukrainian corn exports. According to Spike Brokers, traders now face a harder market for forward contracts because Argentina’s larger crop has increased competition.
“Against this backdrop, Ukrainian exports are starting to lose momentum, and the market is taking into account the likelihood of higher carryovers and a more comfortable start to the new season,” brokers said.
Ukraine exported 1.56 million metric tons of corn between May 1 and May 21. Turkey remained the largest buyer with more than 532,000 metric tons. Italy followed with 197,000 metric tons, while the Netherlands bought 146,000 metric tons. Israel and South Korea imported 112,000 metric tons and 104,000 metric tons respectively.
Despite the pressure from South American grain supplies, corn prices recovered slightly at the end of the week after earlier losses. Strong export sales from the United States supported the market.
Chicago Board of Trade July corn stood at 462 cents per bushel, up 8 cents. MATIF June corn reached €221 per metric ton, equal to about US$250 per metric ton.
FCA Chop June prices stood at €208 to €210 per metric ton, or about US$235 to US$237 per metric ton, while FCA Chop November prices reached €200 per metric ton, about US$226 per metric ton. SPIKE CPT Odesa June prices held at US$229 per metric ton.
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