Weekly Farm Fuels Bulletin | Fuels Correct Higher

Posted on 11/28/2017 10:45 AM

 

As with the fertilizer segment, we suspect many states did not report their fuels prices due to the Thanksgiving Holiday. That skews this week's prices to a degree, but we have been expecting a surge in farm diesel prices, given November's heating oil strength. We still anticipate diesel price softness closer to the first of the year. We will book aggressively for spring on a retail price dip, so be prepared to make a move on spring farm diesel around Christmastime.diesel price chart

Farm Diesel

  • Farm diesel is up 5 cents per gallon this week.
  • Illinois posted a sharp upward correction on the week, forcing our regional average higher as many states were unchanged.
  • According to EIA, distillate supplies firmed 0.3 million barrels to 125.0 million barrels. Now 24.2 million barrels below the same time last year.
  • Front-month heating oil futures have held above support at $1.85 this month, failing below that level for just a short time on November 2.

Propanepropane price chart

  • Propane is 2 cents higher at $1.36 per gallon this week.
  • Illinois led gains here as well as most states were unchanged.
  • According to EIA, propane supplies fell 0.966 million barrels on the week, now 28.954 million barrels below year-ago.
  • Unseasonably warm temperatures will keep propane for grain drying demand alive until temperatures remain below freezing for the winter season. At that same time, as grain drying comes to an end, demand for propane for home heat will stoke the demand furnace.

Fuel
11/13/17
11/20/17
Week-over Change
Current Week
Fuel
Farm Diesel
$2.24
$2.27
+3 cents
$2.32
Farm Diesel
LP
$1.35
$1.34
-3 cents
$1.36
LP

farm diesel heating oil spread chart


 

 

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