Weekly Farm Fuels Bulletin | Petroleum Fundamentals Point Diesel Lower

Posted on 11/27/2018 4:00 PM

 

Farm Dieselfarm diesel price chart

  • Our regional average farm diesel price fell 3 cents per gallon on the week.
  • South Dakota and Indiana led gains as Illinois firmed 31 cents per gallon.
  • WTI crude oil futures are holding just above $52 today, Tuesday.
  • Front-month heating oil futures, meanwhile, have dipped below $2 and ended the day Tuesday around $1.90.
  • Petroleum market fundamentals favor near-term pressure on retail farm diesel prices.

 

Propanepropane price chart

  • Propane prices slipped this week, off a penny per gallon regionally.
  • Price declines in Indiana and Kansas were enough to offset mild gains in Illinois, Minnesota and Missouri.
  • According to EIA, national propane stocks fell 1.984 million barrels, but are currently 8.062 million barrels above the same week last year.
  • The larger than expected supply-side cushion will continue to limit the upside for retail Midwestern propane prices..

Fuel
11/12/18
11/19/18
Week-over Change
Current Week
Fuel
Farm Diesel
$2.75
$2.70
-3 cents
$2.67
Farm Diesel
LP
$1.42
$1.39
-1 cent
$1.38
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.


 

 

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