Chicago Close: Cut in Argentine Grain Export Tax Weighs Again

Jan 29, 2025

Corn, wheat, and soybean futures closed weaker on Monday, with pressure once again coming from lower Argentina grain export taxes.

The Argentine government announced last week that it was trimming grain export taxes, a move that is expected to incentivize producers in that country to sell and increase competition in international markets for American supplies. The tax cut officially took effect today and is expected to run until June. The long-term implications of the tax cut could also lead to rising Argentine production.

Reports today said Argentine wheat is already among the cheapest in the world, with the tax cut likely to bring even more to market.

Much-needed rain in some Argentine production areas over the weekend added to the downside in corn and soybeans, although crops in much of the country still need more moisture. “Concern is already high for a reduction in yields due to the lack of rain,” World Weather said in a report today.

Meanwhile, rainfall is expected to return to portions of Brazil this week, further slowing an already delayed soybean harvest.

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Video: From Students to Solutions | On The Brink: Season 2, Episode 14

Ask Canada’s most decorated soybean breeder his favourite part of the job and he doesn’t name a single variety. He names the students.

Istvan Rajcan is a professor of soybean breeding and genetics in the Department of Plant Agriculture at the University of Guelph, where he has run the soybean breeding program for 28 and a half years. In that time he has developed 87 soybean cultivars, published 140 refereed papers and trained 51 graduate students. In 2025 he received the Public Sector Impact Award from the National Association for Plant Breeding.

He is also worried. In this episode he says Canada is at a crossroads, pointing to recent government cuts to plant breeding programs and to the facilities that support them. His prescription is structural. "Plant breeding funding formula has to be a long-term one," he says.

The formula he is defending is the public-private matching arrangement his program runs on. Private seed companies fund the work, provincial or federal money matches it, and the combined pool stretches each dollar further than either source could alone. At the National Association for Plant Breeding annual meeting in June, he says American public breeders were often surprised at how well that collaboration works in Canada.

He also describes how the people entering plant breeding have changed. His early graduate students came mostly from farms. More recently they include, in his words, "city kids who just became excited about genetics."

Topics covered:

Why public-private plant breeding funding in Canada needs a long-term

commitment rather than a larger one

How matching private seed company investment with provincial and federal

dollars multiplies research capacity

How the graduate student pipeline into plant breeding has shifted from

farm kids to city kids