Farm Diesel Firms as National Supplies Slip

Posted on 10/09/2019 4:42 PM

 

Farm Diesel --farm diesel price chart

  • Our regional average farm diesel price firmed a penny on the week but remains well below last year's price, which was $2.58 per gallon.
  • Michigan diesel firmed a dime as Nebraska added a penny. Beyond those two states, all other states were unchanged on the week.
  • According to EIA, national distillate stocks softened 3.9 million barrels to 127.3 million barrels, 6.1 million barrels below the same week last year. That places stocks right at the low end of the five-year average range.
  • Also of note, November WTI crude oil futures have traded closer to $50 per barrel than to $60 after the market digested attacks on Saudi production facilities. By now, most, if not all Saudi production has been repaired and is back online.
  • Upside risk is building for farm diesel as combines begin to roll. Since we are up a penny this week, we are keeping a close eye on the market, especially with national distillate supplies lagging. But with 10 of the 12 states in our survey unchanged on the week, we hesitate to call this week's move a turnaround.

We are 50% filled on Farm Diesel for harvest and advise you be prepared to book remaining needs within the next few weeks.propane price chart

Propane --

  • Our regional average propane price is unchanged again this week at $1.16, far below last year's $1.37 per gallon.
  • Price action was more mixed for propane than it was for diesel on the week. Nebraska and Michigan each firmed 2 cents as Illinois added a penny per gallon. Kansas softened 2 cents and Iowa fell a penny per gallon.
  • According to EIA, national propane supplies firmed 132,000 barrels on the week to 100.773 million barrels, 20.512 million barrels above the same week last year. That place propane stocks at the very top of the five-year average supply range.
  • It will be important to avoid complacency regarding your operation's LP supply through harvest and into winter. Weather forecasters are predicting climatic volatility will continue through the winter months which will mean severe storms and possible delays for propane deliveries. Keep an eye on your on-site storage and top off when the sun shines.

Fuel
9/23/19
9/30/19
Week-over Change
Current Week
Fuel
Farm Diesel
$2.34
$2.36
+1 cent
$2.37
Farm Diesel
LP
$1.16
$1.16
Unchanged
$1.16
LP

 

 

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