Soybeans advanced on Friday after the Argentine government failed to lift a ban on beef exports as had been promised earlier this week, raising concerns that farmers and the government may not resolve a dispute over taxes that disrupted crop exports.

Futures for July delivery gained 2.7 percent or 34.5 cents to $13.055 a bushel on the Chicago Board of Trade.

Soybean oil for July delivery increased by 2.9 percent or 1.62 cents to 57.97 cents a pound in Chicago.

Soybean futures have declined by 20 percent since posting the highest record of 72.69 cents on March 4.

Soybean prices had declined yesterday on speculations that negotiations between the government and farmers would resolve the disputes.

The export tax that the Argentine government announced on March 12 imposes more than 40 percent levy on beans, depending on the market prices compared to the previous flat rate of 35 percent.

Argentine is the world's largest exporter of animal feed and vegetable oil made from the oilseed.