Weekly Farm Fuels Bulletin | Diesel Trudges Higher

Posted on 06/05/2018 4:02 PM

 

Farm Dieseldidesle price chart

  • Farm diesel firmed a penny per gallon on the week.
  • WTI crude oil has softened sharply from last week and July futures are currently trading around $65.
  • Heating oil futures are off their recent high as well, now pointed lower around $2.12.
  • WTI and heating oil futures have a direct impact on farm diesel prices. But it is important to remember there is a 1 to 3 week lag in price action. So even as WTI rejects life above $70 and heating oil sinks toward $2.10, we still see significant near-term upside price risk for farm diesel.

Propane

  • Propane prices fell a penny per gallon on the week.
  • We expect seasonal pressure to weigh on near-term propane prices, but this time last year, prices were trending in a decidedly sideways pattern.
  • According to EIA, propane supplies are currently at the very bottom end of the five-year average range, which will keep a hard floor under prices until supplies rebuild.

Fuel
5/21/18
5/28/18
Week-over Change
Current Week
Fuel
Farm Diesel
$2.48
$2.52
+1 cent
$2.53
Farm Diesel
LP
$1.41
$1.40
-1 cent
$1.39
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.

diesel spread chart


 

 

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