Farm Diesel Still Seeking Price Floor

Posted on 09/04/2019 1:03 PM

 

Farm Diesel --farm diesel price chart

  • Our regional average farm diesel price is off 3 cents per gallon this week.
  • Nebraska fell 14 cents, Iowa dropped a dime and Missouri farm diesel softened 7 cents per gallon.
  • Several states were unchanged and only Ohio posted a higher price on the week; up 2 cents per gallon.
  • According to EIA, in the week ended August 23, national distillate stocks fell 2.1 million barrels to 136.1 million barrels, 6.1 million barrels above the same week last year.
  • Midwestern distillate stocks grew through August and are 1.1 million barrels above the same time last year in the Corn Belt.

We are 50% filled on Farm Diesel for harvest and advise you be prepared to book remaining needs within the next few weeks. We continue to await the market's guidance, and with prices off 3 cents per gallon this week, we will let the market indicate it has exhausted the downside before filling remaining harvest and winter needs.

Propane --propane price chart

  • Our regional average propane price is up a penny per gallon on the week.
  • Some forecasters are calling for an early frost -- one guest of AgriTalk Radio put the date in the central Corn Belt around September 15. Others farther north are predicting a blanket of snow in parts of Minnesota before October 1. Even without an early frost or snow event, propane demand will be very high for grain drying and if the temperature dips and Midwesterners crank up the heat, upside LP price risk will be exacerbated. Avoid supply squeezes and the potential for an upward price response by filling your propane needs at current prices.
  • According to EIA, national propane stocks firmed 3.661 million barrels during the report week, now at 94.157 million barrels; 22.757 million barrels above the same week last year.
  • As with distillate stocks, propane stocks in the Midwestern region have been building for the past several weeks. That may mean LP producers are expecting hefty autumn demand and are working to keep propane readily available in the Midwest.

Book remaining propane needs for harvest and winter and fill on-site storage to capacity at current prices.


Fuel
8/19/19
8/26/19
Week-over Change
Current Week
Fuel
Farm Diesel
$2.39
$2.40
-3 cents
$2.37
Farm Diesel
LP
$1.16
$1.14
+1 cent
$1.15
LP

 

 

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