June 2, 2026

 

Argentina to lower export taxes on wheat and barley

 

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 of global grain trade.

 

Argentine President Javier Milei announced the plan on May 21. He also said soybean export taxes will be reduced from January 2027 by between 0.25 and 0.5 percentage points.

 

The government said the measures form part of its broader 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 provided full details.

 

The move comes as Argentina raises expectations for corn production and export volumes. The Buenos Aires Grain Exchange recently increased its corn production forecast from 61 million metric tonnes to 64 million metric tonnes. The additional supply could increase pressure on global markets during the June-to-August period.

 

That outlook has already begun to affect Ukrainian corn exports. According to Spike Brokers, traders are facing a more challenging market for forward contracts as Argentina's larger crop increases 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," the brokers said.

 

Ukraine exported 1.56 million metric tonnes of corn between May 1 and May 21. Türkiye remained the largest buyer with more than 532,000 metric tonnes. Italy followed with 197,000 metric tonnes, while the Netherlands purchased 146,000 metric tonnes. Israel and South Korea imported 112,000 metric tonnes and 104,000 metric tonnes respectively.

 

Despite 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 (US$250) per metric tonne.

 

FCA Chop June prices stood at €208–210 (US$235–237) per metric tonne, while FCA Chop November prices reached €200 (US$226) per metric tonne. SPIKE CPT Odesa June prices held at US$229 per metric tonne.

 

- Milling Middle East & Africa