Weekly Farm Fuels Bulletin | Diesel Falls as Propane Heats Up

Posted on 12/04/2018 4:20 PM

farm diesel price chart

Farm Diesel

  • Our regional average farm diesel price fell 4 cents per gallon on the week.
  • Missouri led declines, falling 18 cents as Ohio, Michigan and North Dakota all dropped 14 cents.
  • According to EIA, national crude oil stocks firmed 3.6 million barrels to 450.5 million barrels in the week ended November 23, 2018, now 3.2 million barrels below the same time last year.
  • Distillate supplies firmed as well during the report week, up 2.6 million barrels on the week, but 6.0 million barrels below the same time last year.
  • Your local gas station is likely posting lower and lower gasoline prices. While farm diesel will lag the downtrend, we do expect ruby red to continue lower through December.propane price chart

Propane

  • Propane prices firmed 3 cents per gallon this week, likely in response to the onset of winter weather.
  • Kansas led gains firmed 21 cents as Indiana added 17 cents per gallon on the week.
  • Propane prices may have already placed its December low, and if the weather remains colder than normal, prices will respond higher.
  • Make sure you have sufficient propane as this winter's weather is expected to be volatile.

Fuel
11/19/18
11/26/18
Week-over Change
Current Week
Fuel
Farm Diesel
$2.70
$2.67
-4 cents
$2.63
Farm Diesel
LP
$1.39
$1.38
+3 cents
$1.41
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.

This week, our spread analysis indicates near-term downside potential for retail farm diesel.


diesel spread chart

 

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