Diesel Holds Steady as Propane Firms

Posted on 12/12/2019 1:14 PM

 

Farm Diesel --

  • Our regional average farm diesel price is unchanged on the week at $2.38 per gallon.
  • South Dakota led gains adding 8 cents as North Dakota firmed 3 cents. Michigan fell 4farm diesel price chart cents as Nebraska dropped a penny per gallon.
  • January crude oil futures have trended higher through December, by today, Dec. 12, the contract has firmed $3.45 and is threatening a breech of the key $60 level.
  • January heating oil futures have also been in a mild uptrend since the start of December, but are stuck below $2.00, which is our "level to watch" for an indication farm diesel is set to firm.
  • According to EIA, national heating oil stocks are at the low end of the 5-year average supply range, but are up 4.1 million barrels as of the report week ended December 6. Stocks are currently 500,000 barrels below year-ago.

We are sticking with out outlook for a seasonal farm diesel price slump into the Christmas season which presents a great opportunity to square your tax position as needed and to top off for winter or spring needs. Farm diesel has been very closely tied to the five-year average price reported to your Inputs Monitor suggesting a Christmas price low around $2.30 regionally.propane price chart

Propane --

  • Our regional average propane price is up 3 cents this week at $1.29 per gallon.
  • No state posted a lower propane price this week. Minnesota led gains, adding 9 cents as Wisconsin firmed a nickel on the week.
  • According to EIA, in the report week ended Dec. 6, national propane stocks firmed 1.718 million barrels, now 16.941 million barrels above the same week last year.

The propane distribution snag has evidently been remedied and the Midwest has escaped with only a mild price gain. That will leave propane prices subject to weather based demand. A very cold winter will support higher prices on the basis of increased residential heating demand.. While most -- if not all of you reading this post -- have already locked in your winter price, we must continue to diligently monitor on-site storage. If supply constraints re-emerge, rationing, allocations and delayed deliveries could easily become the reality without warning.


Fuel
11/25/19
12/2/19
Week-over Change
Current Week
Fuel
Farm Diesel
$2.38
$2.38
Unchanged
$2.38
Farm Diesel
LP
$1.26
$1.26
+3 cents
$1.29
LP

 

59.41

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