Weekly Farm Fuels Bulletin | Diesel Posts Little Price Movement

Posted on 07/25/2018 12:09 PM

 

Farm Dieseldiesel price chart

  • Our regional average farm diesel price was unchanged on the week at $2.56.
  • Nine states were unchanged which offset timid strength in Iowa, Minnesota and Missouri.
  • WTI crude futures have set their sights on the upside, but progress has been hard-fought as market bulls are losing their swagger.
  • Italy reported record imports of light, sweet U.S. crude in June which indicates strong demand for U.S. crude, especially if output falters among OPEC producers.
  • EIA reported in the week ended July 20 U.S. crude stocks at the lowest seasonal level since 2014 as refinery runs hit a seasonal record at 17.36 million barrels per day.

Propanepropane price chart

  • Propane prices fell 2 cents on the week regionally.
  • A sharp decline in Kansas led LP lower on the week although Iowa joined the price softness as Missouri firmed a penny.
  • We continue to expect seasonal softness in Midwestern propane, but national stocks are 1.451 million barrels below the same time last year, off 774,000 barrels on the week. Supplies will need to aggressively rebuild if prices are to soften in earnest.

Fuel
7/9/18
7/16/18
Week-over Change
Current Week
Fuel
Farm Diesel
$2.54
$2.56
Unchanged
$2.56
Farm Diesel
LP
$1.31
$1.30
-2 cents
$1.28
LP

Our farm diesel/heating oil futures spread compares the weekly average retail farm diesel price with front-month heating oil futures as of the close on the previous Friday. A move below the "line in the sand" indicates pending upside risk. A move above our "line in the sand" indicates downside potential.


farm diesel heating oil futures spread chart

 

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