Morning Highlights


  • 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


  • 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.