Weekly Farm Fuels Bulletin | Farm Fuels Firm

Posted on 04/24/2018 4:27 PM

 

Farm Dieseldiesel chart

  • Farm diesel firmed a penny on the week regionally on strength from upside moves in three states.
  • Nine states were unchanged, however, implying pent-up upside risk.
  • Heating oil and crude oil futures' price action also suggest pending upside risk for diesel as farm diesel appears undervalued compared to futures currently.
  • We have our spring and early summer diesel needs covered, but we are only a penny higher on average this week so there is likely still time to get caught up before diesel corrects higher.

Propane

  • Our average propane price firmed back up to $1.41 this week on strength in Kansas.propane price chart
  • A propane pipeline in the northeastern U.S. has been shut down due to sinkholes and the company expects it to remain closed for another 4 weeks. We will cover that more deeply in this week's Farm Fuels in Focus.
  • Suppliers are at the front edge of injection season and retailers will soon be refilling stocks for the upcoming year.
  • While it is our expectation that prices will come in above last year's, there has been the suggestion that the northeastern pipeline shutdown could actually swell Midwestern supplies, weighing on offseason prices.

Fuel
4/9/18
4/16/18
Week-over Change
Current Week
Fuel
Farm Diesel
$2.37
$2.37
+1 cent
$2.38
Farm Diesel
LP
$1.43
$1.39
+2 cents
$1.41
LP

farm diesel heating oil futures spread chart


 

 

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