Wedoany.com Report-Jun. 30, In the first 18 days of June 2025, Argentina’s soybean sales reached 4.71 million tonnes, doubling from the previous year, as farmers hurried to finalize deals before an export tax hike set for July 1, according to official data analyzed by Reuters and industry sources. Argentina, the world’s leading exporter of soybean oil and meal, saw increased activity due to a temporary tax reduction earlier in 2025, which is due to expire, raising soybean taxes from 26% to 33% and soybean oil and meal taxes from 24.5% to 31%.

The rush to sell before the tax increase reflects producers’ efforts to benefit from lower rates, as noted by Lorena D’Angelo, an agricultural market analyst in Rosario, a key agricultural hub. She stated: “Business activity, especially in the soybean sector, has picked up in recent weeks due to the (expected) expiration of the decree reducing tax withholdings.” Ariel Tejera, senior market analyst at Grassi SA in Rosario, reported that agricultural export firms declared nearly $4 billion in grain and agribusiness sales by June 23, surpassing the five-year June average of $2.6 billion.

Gustavo Idígoras, president of the CIARA-CEC grain and oilseed export chamber, confirmed the surge in sales and overseas deals reported by companies like Bunge and Cargill. However, he cautioned: “With the increase in export duties to the initial rates, this sales flow is not expected to remain at the same level, so we may also see a decrease in sales abroad.” The impending tax hike could reduce farmers’ soybean prices by about $30 per ton, with prices in Rosario closing at approximately $280 per ton, a historically low level, according to Tejera.

Dante Romano, a researcher at the Center for Agribusiness at Universidad Austral in Rosario, noted: “At that price, their profitability is at significant risk.” The industry has been advocating for an extension of the tax reduction, but government spokesman Manuel Adorni stated: “There is no decision on this yet.” D’Angelo warned: “This growth will result in nothing else being sold after that, which could be counterproductive.”

Argentina, a major producer of corn and wheat, relies heavily on soybean exports to generate foreign currency, critical for its economy. The tax hike may slow sales in July, impacting farmers’ margins and export volumes. The data highlights the strategic timing of sales to maximize returns before higher taxes take effect, reflecting the agricultural sector’s efforts to navigate economic challenges while maintaining global market competitiveness.