Weekly Farm Fuels Bulletin | Fuels Stabilize as WTI Falls

Posted on 11/13/2018 12:05 PM

 

Farm Dieselfarm diesel chart

  • Farm diesel was unchanged on the week with eight states posting no price change on the week.
  • Michigan posted the only price increase on the week, firming a penny per gallon to a statewide average of $2.80.
  • WTI crude oil futures are sharply lower as of 11am Tuesday, Nov. 13. on cooling international tensions.
  • Heating oil futures are nearing lows posted in Mid-August, which marks a divergence from the aggressive upswing in progress in natural gas futures.
  • With harvest activity nearly sewn up, seasonal agricultural demand is likely waning and we will continue to look to late December for an opportunity to lock in spring diesel.
  • According to EIA, U.S. national distillate stocks fell 3.5 million barrels and now lie 2.7 million barrels below the same week last year.

Propanepropane price chart

  • Our regional average propane price is unchanged this week as well with ten states in our twelve-state survey making no weekly change.
  • Indiana posted the only decline in our propane price survey this week falling 4 cents per gallon to a statewide average of $1.66.
  • National propane stocks are on the rise according to EIA. National propane inventories firmed 1.512 million barrels and are now 7.328 million barrels above the same week last year as of the week ended November 2.
  • This week's shift to colder weather in the Midwest will keep a floor of support under regional propane prices.

Fuel
10/29/18
11/5/18
Week-over Change
Current Week
Fuel
Farm Diesel
$2.70
$2.75
Unchanged
$2.75
Farm Diesel
LP
$1.42
$1.42
Unchanged
$1.42
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 indicates near-term downside potential for retail farm diesel.


 

farm diesel heating oil futures spread chart

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