Fuel

Propane supplies are healthy and prices fell this week. We expect at least another week of price pressure before we consider booking harvest and winter supplies.

Farm diesel and propane have stalled and while the outlook is uncertain, we have reason to believe lower prices may lie ahead.

According to EIA, U.S. distillate stocks surged in the most recent report week, topping the previous near-term high.

Propane prices held steady on the week, but farm diesel has exhausted our appetite for harvest price risk.

Phil Flynn from the Price Futures group joins Chip Flory and Davis Michaelsen on AgriTalk Radio. In this excerpt, Flynn talks supply-side risk in distillates.

This week's price action strongly suggests the bottom is in place for farm diesel.

Farm diesel continued lower, and our spread analysis suggests the floor might be in. But national stocks surged last week, perhaps limiting the upside for ruby red.

Even as crude oil works to recover, farm diesel prices are lower on the week.

Farm fuels prices dove sharply lower on the week, and national distillate stocks have forged an unprecedented, aggressive recovery.

Many farmers had wondered when diesel would reflect the decline in crude and heating oil futures. This is that week.