Bean Market Shows Strong Uplift Amid Export Tax Changes

The bean market is experiencing a notable increase with prices rising 10 to 14 cents. Analysts anticipate significant export sales ahead of the USDA report, while an impending tax hike in Argentina may impact global soybean prices.

Date: 22-05-2025

AI Rating: 7

Market Overview: The current surge in bean prices, with contracts showing gains between 10 to 14 cents, could signal increased investor interest in the commodities sector. The CmdtyView Cash Bean price now stands at $10.15 1/4. With the USDA's upcoming Export Sales report, projections suggest robust activity with old crop soybean sales expected to be between 100,000 to 300,000 MT, reflecting stabilization in demand.

The expectation for soybean meal sales to land between 100,000 to 450,000 MT further supports positive sentiment in the market. The increase in soy oil futures by 63 points indicates a surge in demand for value-added products, hinting at robust profit margins for processors and those involved in the supply chain.

Impact of Argentina’s Tax Policy: The expiring export tax reduction on soybeans in Argentina reverting from 26% back to 33% will likely create upward pressure on global soybean prices. The higher tax rate may deter exports from Argentina, a major supplier, potentially benefiting U.S. producers and elevating their market share. This tax change could further amplify the demand for U.S.-grown soybeans.

Investor Sentiment: Overall, positive price movements along with favorable sales projections suggest a bullish trend for soybean-related investments. Professional investors should consider monitoring key indicators related to the USDA report and how the evolving situation in Argentina will affect global commodity flows.

Stocks: ADM BG SYT CORN