Wheat farmers in the biggest of South America's generators of the grain are poised to augment sowing this year, according to analysts and an advocacy group.
Bloomberg reports the government of Argentina is likely to provide reimbursements as high as 23 percent for export tax purposes in 2013-2014, a grain exporting official said. The official could not be publicly identified prior to Argentina President Cristina Fernandez de Kirchner publicly detailing the plan Monday eve.
"A few farmers may believe in this promise and may return to planting wheat," analyst Aldana Ferradas with Bahia Blanca Grain Exchange told the news source on Monday. "The government announcement will arrive right on time to convince them as planting is expected to begin late this month and in June."
At 2:15 p.m. on Monday, wheat futures fell 2.53 percent, a 0.1825-cent drop to $7.0275 per bushel.
Reuters reports losses to U.S. grain on Monday, which mark a second consecutive session of backtracking, were linked with concerns dissipating about slow planting. Despite the past two trading sessions of losses, the grain increased more than 3 percent last week.
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