-Argentina raises soy complex export taxes, corn/wheat unchanged
-Chinese SBO demand seen notably impacted by coronavirus/SBM impacted but less so
-Private Brazilian/Argentine soybean crop ideas moving higher
-Brazil biodiesel blending mandate graduating higher
The equity market rollercoaster continues this morning with e-minis and Dow futures up strongly following yesterday’s notable downturn after Monday’s record gains. Energies are higher again this morning, as well, while the grains are a mixed bag with soybeans/soybean oil supported by the Argentine export tax increase (SBM slight setback after $15+ rally over the last week), corn little-changed and wheat weaker again.
ï‚· Argentina announced details of their ag product export tax adjustments with 3% increases across the soy complex being put into place putting the tax for soybeans, soybean meal and soybean oil now at 33%. Taxes for corn and wheat were left unchanged at 12%, while sunflower, peanut and rice export taxes decline 5-6%. The export registry is expected to re-open today.
 Rabobank sees China’s soybean oil domestic consumption to decline by 7% from last year, to 3 MMT, during the first half of 2020 due to impacts from the coronavirus epidemic. The notable decline in people going to restaurants and overall curtailment of public activity impacting all facets of the food service industry is expected to hit soybean oil consumption the hardest. They see soybean meal domestic consumption declining by 4% in the 1st half of 2020 to 13 MMT due to coronavirus, as well, given the reduction in meat consumption and transportation restrictions impacting livestock movement. However, they expect these impacts to be short-lived with a strong rebound in SBO and SBM demand expected in the 2nd half of 2020 as high livestock prices and pent up demand spur consumption amid the expected waning coronavirus effects.
 The company formerly known as Informa, IEG Vantage, sees the Brazilian soybean crop at 128 MMT and Argentina at 55.0 MMT, both solidly above USDA’s last estimates of 125 and 53 MMT, respectively.
 Brazil’s program of graduated increases in biodiesel blending saw its next incremental 1% increase take effect on March 1, putting the blending mandate nationwide now at 12%. The mandate is set to increase 1% annually, on March 1, until reaching a 15% blend in 2023. The 1% increase this year is expected to raise biodiesel demand by around 1 billion liters (264 mil gallons).
ï‚· South Korea bought 85k tonnes of U.S. wheat (multiple varieties) for June-July (new crop) shipment. This is routine business as South Korea consistently buys 1.3-1.5 MMT of U.S. wheat annually.
 March soybeans saw 384 contracts of yesterday’s initial 1,000 issues re-delivered today. Soybean meal deliveries were 555 contracts (922 yesterday) and 108 contracts soybean oil (343 yesterday. KCBT wheat deliveries of 9 contracts continue to recirculate, as well. MPLS wheat deliveries dried up, while there have yet to be any corn or CBOT wheat March deliveries .
Weather Dry conditions are expected through the Argentine weekend, but a return of rains early next week is still in the forecast with.40-1â€, isolated to 1â€+, expected for the first half of next week. The models have come into good agreement on the placement of those rains, with the heart of the growing areas (northern Buenos Aries, southern Santa Fe/Entre Rios) to see the bulk of the activity. With the recent dry stretch, these rains have become more important. The 2nd half of next week looks dry again. Rains of .25-.75â€+ again fell across the northern ½ of Mato Grosso, Goias and Minas Gerais yesterday, with conditions dry in the rest of the Brazilian growing regions. Rains will fall in the northern ½ of Mato Grosso, most of Goias and Minas Gerais over the coming 5-day period, with most totals in the 1-2†range. The same area sees rains continue in the 6-10 day period with .50-1.5†expected.