3/17/2017 7:42:07 AM
- President Trump’s newly released budget proposal for 2018 asks for $17.9 billion for the USDA. This would be a $4.7 billion cut or 21% decline in funding. The proposal is meant to keep the USDA’s core values, but eliminate discretionary spending and duplicate programs.
- Trump’s proposal does increase the military’s budget by $54 billion in hopes of making or military personnel safer and more effective.
- On average, 70 million pounds of corned beef is consumed on St. Patrick’s Day every year.
- CHS Hedging has an upcoming energy hedging class: March 22nd in Champaign, IL. It is not too late to be signed up! You can register for the class at www.chshedging.com.
- Scattered precipitation across the Midwest is dwindling away the chances of getting in the fields early in order to get the crop in the ground.
- Open interest for July corn futures jumped up 7,800 contracts.
- Weather continues to be favorable for the corn crop development in South America.
- China’s September corn contract closed at 1,659 yuan/ton. That is 4.5% rally this week and the largest rally since November.
- Spreads: K/N 7.5¢ carry, K/U 14¢ carry and K/Z 21.75¢ carry.
Outlook: Continued sideways trade as we move closer to the March 31 Prospective Plantings report.
- In the 1-5 day forecast, rains in central Brazil will slow down fieldwork and any harvesting that remains.
- India’s rapeseed production for the 16/17 crop year jumped 20%. Farmers expanded planted acres as rainfall has been ample and edible oil prices have been on the rise. India is the world’s largest buyer of edible oils.
- Chinese soybeans dropped 40.5 ¢ since last Friday.
- Malaysian palm oil closed up 7 ringgits at 2,803 for June, up 81 for the week.
- Spreads: K/N 9.75¢ carry, K/Q 11.255¢ carry and N/X 15.5¢ inverse.
Outlook: Mixed trade on weaker soybean meal and firmer on soybean oil.
- Turkey removed Russia from its list of acceptable origins for wheat imports. Russia is Turkey’s second largest wheat export market, shipping 1.9 mmt between July ’16 and January ’17.
- Egypt has purchased nearly 1 mmt of wheat in the past two weeks, which is 20% more than they bought all of last year. The country’s subsidized bread program is the explanation for the increase in wheat imports.
- France’s spring barley planting was 41% complete on March 13.
- Spreads: Mpls K/N 5.5¢ carry, Kansas City K/N 11.75¢ carry and Chicago K/N 15¢ carry.
Outlook: Mixed on quiet trade.