Argentina’s Customs Duty Suspension Pressures Global Soybean Prices

24-Sep-2025 09:05 PM

Buenos Aires. The economic crisis has deepened following the ruling party's unexpected defeat in local elections in Buenos Aires Province, a key region in the Latin American country of Argentina.

Parliamentary elections are scheduled for next month. Investors are doubtful about the president's political stability. Argentina has already spent $20 billion of the International Monetary Fund (IMF) assistance it had secured.

The situation has led to a sharp decline in the exchange rate of Argentina's currency, the peso. To stabilize the peso's exchange rate against the dollar, the Central Bank was forced to sell $1.10 billion from its reserves.

In light of this, the federal government on September 22 suspended export duties on grains, soybeans, and processed food products until October 31, 2025.

Following this temporary duty suspension, the government expects increased exports and increased foreign exchange inflows.

However, this government decision is likely to significantly increase the supply and availability of soybeans and their value-added products in the global market, exerting upward pressure on prices.

The low prices of soybeans, soy oil, and soy meal exported from Argentina will force other exporting countries to reduce their export offer prices.