Farm Fuels In Focus | Opportunity Knocks, Again

Posted on 04/20/2018 3:22 PM

 

You should be 100% filled on farm diesel for spring and early summer fieldwork.

  • May 2018 natural gas opened today at $2.67, unchanged from our last report.
  • Farm Diesel is unchanged on the week at an average of $2.37 per gallon.
  • May 2018 WTI crude oil opened the day at $68.26, up $1.51 from our last report.
  • May 2018 Heating oil futures opened the day at $2.11, up 2 cents from our last report.
  • Propane is down 4 cents at $1.39 per gallon regionally.

Farm Diesel -- Farm diesel prices were unchanged on the week with Ohio off 9 cents per gallon. Seven states were unchanged as Iowa gained 3 cents, Michigan gained 2 cents and Minnesota added a penny.farm diesel price chart

Demand for crude oil and petroleum products is on the rise, weighing on inventories and supporting higher prices. Many market watchers now view a move to $70 per barrel as a foregone conclusion. Demand for crude and fuels continues to build and some have estimated this summer's fuel prices could climb to 11% above last summer.

This week, with farm diesel unchanged we have a second opportunity to book diesel so if you chose not to book last week, there still may be time. Dealers will likely have to refill at higher prices once current supplies run out and while robust refinery runs will help support strong availability, prices are set to follow crude oil and heating oil futures higher. Our farm diesel/heating oil spread (see below) would agree and currently favors a near-term price hike.


  • Distillate inventories reported by EIA softened 3.1 million barrels to 125.3 mmbbl. Stocks are currently 22.9 mmbbl below the same time last year.
  • The regionwide low currently lies at $2.12 in Ohio. The Midwest high is at $2.61 in Missouri.
Farm Diesel 4/19/18
Three Weeks Ago
Previous Week
Change
Current Week
 
Iowa
$2.45
$2.45
+3 cents
$2.48
Iowa
Illinois
$2.31
$2.31
Unchanged
$2.31
Illinois
Indiana
$2.49
$2.48
+2 cents
$2.50
Indiana
Ohio
$2.21
$2.21
-9 cents
$2.12
Ohio
Michigan
$2.37
$2.37
+2 cents
$2.39
Michigan
Wisconsin
$2.19
$2.19
Unchanged
$2.19
Wisconsin
Minnesota
$2.34
$2.34
+1 cent
$2.35
Minnesota
North Dakota
$2.39
$2.39
Unchanged
$2.39
North Dakota
South Dakota
$2.50
 
$2.36
 
Unchanged
 
$2.36
 
South Dakota
Nebraska
$2.40
$2.40
Unchanged
$2.40
Nebraska
Kansas
$2.36
$2.33
Unchanged
$2.33
Kansas
Missouri
$2.61
$2.61
Unchanged
$2.61
Missouri
Midwest Average
$2.39
$2.37
Unchanged
$2.37
Midwest Average

Propane -- Lp was generally lower on the week with Indiana off 20 cents, Iowa down 12 cents and Kansas falling 6 cents per gallon. Nine states were unchanged and no state posted a higher price on the week.


  • According to EIA, national propane inventories firmed 0.040 million barrels -- now 3.771 million barrels below the same time last year at 35.872 million barrels.
  • The regionwide low is at $1.20 per gallon in Wisconsin, and the regionwide high is in Indiana at $1.81.
LP 4/19/18
Three Weeks Ago
Previous Week
Change
Current Week
 
Iowa
$1.35
$1.35
-12 cents
$1.23
Iowa
Illinois
$1.43
$1.43
Unchanged
$1.43
Illinois
Indiana
$2.01
$2.01
-20 cents
$1.81
Indiana
Ohio
$1.35
$1.35
Unchanged
$1.35
Ohio
Michigan
$1.24
$1.22
Unchanged
$1.22
Michigan
Wisconsin
$1.20
$1.20
Unchanged
$1.20
Wisconsin
Minnesota
$1.64
$1.64
Unchanged
$1.64
Minnesota
North Dakota
$1.39
$1.39
Unchanged
$1.39
North Dakota
South Dakota
$1.47
 
$1.47
 
Unchanged
 
$1.47
 
South Dakota
Nebraska
$1.21
$1.21
Unchanged
$1.21
Nebraska
Kansas
$1.29
$1.29
-6 cents
 
$1.23
Kansas
Missouri
$1.55
$1.55
Unchanged
 
$1.55
Missouri
Midwest Average
$1.43
$1.43
-4 cents
$1.39
Midwest Average

farm diesel heating oil spread chart

Add new comment