Weekly Farm Fuels Bulletin | Fuels Advice Updated

Posted on 09/05/2018 12:38 PM

 

Farm Dieseldiesel price chart

  • Farm diesel is lower on the week as harvest demand looms.
  • Heating oil and WTI futures shot higher yesterday as traders anticipated the impacts of Hurricane Gordon, which struck the Gulf Coast of Alabama Tuesday evening. The storm softened ahead of landfall, and little if any damage was reported by refiners and offshore drillers.
  • Crude oil market bears have the upper hand, on a technical basis, but concerns have been renewed in Libya as tensions are increasing in key export regions.
  • Overall, we fully expect harvest activity to keep a floor under Midwestern diesel prices, but if crude and heating oil futures soften, that diesel price floor may be difficult to buttress. We will wait on an indication retail diesel prices are set to firm before booking for harvest.

Propanepropane price chart

  • Our regional average propane price is unchanged this week and we advise growers book harvest and winter propane at current prices.
  • While many will have already booked fall/winter propane, those who have not are at risk the extremely wet weather in the Central Plains will lead to more demand for propane to dry crops after harvest.
  • While we have found no indications of supply shortfalls or pipeline outages, harvest the the wet weather mentioned above certainly have the power to support a hefty rise in retail LP prices.
  • Book propane at current prices, and we advise, as always, to completely fill your on-site storage to guard against unexpected shortages.

Fuel
8/20/18
8/27/18
Week-over Change
Current Week
Fuel
Farm Diesel
$2.51
$2.51
-2 cents
$2.49
Farm Diesel
LP
$1.34
$1.31
Unchanged
$1.31
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.


heating oil futures/farm diesel spread chart

 

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