Farm Fuels in Focus: Book Farm Diesel

Posted on 03/09/2017 10:25 AM

 

  • February 2016 natural gas opened today at $3.30 -- down 27 cents from our last Fuels in Focus.
  • Farm Diesel is up 2 cents on the week at an average of $1.95 per gallon.
  • February 2016 WTI crude oil opened the day at $53.73 -- up $1.21 from our last report.
  • February 2016 Heating oil futures opened the day at $1.69 -- up a nickel a penny from our last report.
  • Propane is up 3 cents on the week to an average of $1.19 per gallon regionally.

inputsmonitor.com"Farm Diesel -- No state posted a lower farm diesel price this week. Illinois led to the upside firming 13 cents per gallon as Michigan added 6 cents and Nebraska up 4 cents. Six of the twelve states in our survey were unchanged.

It looks as though OPEC and non-OPEC producers will adhere to their November agreement to cut production. Between that and strength in heating oil futures, our appetite for risk on 100% of our spring diesel ran out and we advised last week to top off winter supplies and book 50% of expected diesel needs for spring. U.S. rig counts continue to firm as crude oil futures stabilize in the mid-$50's per barrel. The market is uncertain for the time being, and we will wait to see what winter brings, and look for opportunities to finish booking spring diesel.

  • Distillate inventories reported by EIA firmed 10.1 million barrels to 161.7 mmbbl. Stocks are currently 2.3 mmbbl above the same time last year.
  • The regionwide low currently lies at $1.88 in Nebraska & Kansas and the Midwest high is at $2.10 in Indiana.
Farm Diesel 1/6/17
Three Weeks Ago
Previous Week
Change
Current Week
 
Iowa
$1.89
$1.91
1 cent
$1.92
Iowa
Illinois
$1.94
$1.94
13 cents
$2.07
Illinois
Indiana
$1.93
$2.10
Unchanged
$2.10
Indiana
Wisconsin
$1.92
$1.92
Unchanged
$1.92
Wisconsin
Minnesota
$1.92
$1.93
3 cents
$1.96
Minnesota
South Dakota
$1.95
$1.95
Unchanged
$1.95
South Dakota
North Dakota
$1.85
$1.82
2 cents
$1.84
North Dakota
Nebraska
$1.83
$1.84
4 cents
$1.88
Nebraska
Missouri
$1.90
$1.95
Unchanged
$1.95
Missouri
Kansas
$1.86
$1.88
Unchanged
$1.88
Kansas
Ohio
$1.89
$1.89
Unchanged
$1.89
Ohio
Michigan
$1.90
$1.97
6 cents
$2.03
Michigan
Midwest Average
$1.90
$1.93
2 cents
$1.95
Midwest Average

 

inputsmonitor.comPropane -- Wisconsin led gains firming 15 cents as Minnesota and Illinois each added 6 cents and Michigan firmed a nickel. Four states were unchanged as Missouri led gains, firming 4 cents per gallon as Kansas added 2 cents.

Still no sign of supply constraints on the propane side, but as the rest of the petroleum sector firms, propane is likely to follow. As with diesel, we remain skeptical that the current rally in crude, home heating fuels and diesel is sustainable but the potentially bearish factors will take some time to impact the fuel markets. As with diesel, we will continue to wait for propane to signal an imperative to book before topping off winter supplies. However, we advised at the September low to book 100% of your needs for winter propane, and your on-farm supplies should last you until late March.

  • According to EIA, last week, national propane inventories softened 2.746 million barrels -- now 12.218 million barrels below the same time last year at 84.123 million barrels.
  • The regionwide low is at $1.05 per gallon in Iowa and the regionwide high is in Indiana at $1.36.
LP 1/6/17
Three Weeks Ago
Previous Week
Change
Current Week
 
Iowa
$1.03
$1.04
1 cent
$1.05
Iowa
Illinois
$1.21
$1.21
6 cents
$1.27
Illinois
Indiana
$1.38
$1.36
Unchanged
$1.36
Indiana
Wisconsin
$1.15
$1.15
15 cents
$1.30
Wisconsin
Minnesota
$1.09
$1.09
6 cents
$1.15
Minnesota
South Dakota
$0.95
$1.09
Unchanged
$1.09
South Dakota
North Dakota
$0.95
$1.09
Unchanged
$1.09
North Dakota
Nebraska
$1.03
$1.04
2 cents
$1.06
Nebraska
Missouri
$1.15
$1.15
-4 cents
$1.11
Missouri
Kansas
$1.31
$1.34
-2 cents
$1.32
Kansas
Ohio
$1.10
$1.10
Unchanged
$1.10
Ohio
Michigan
$1.27
$1.30
5 cents
$1.35
Michigan
Midwest Average
$1.14
$1.16
3 cents
$1.19
Midwest Average

 

inputsmonitor.com


 

"

Add new comment