Farm Fuels Still Under Pressure

Posted on 05/15/2020 12:06 PM

 

With this week's 7 cent cut in the regional average farm diesel price, we will remain hand-to-mouth farm diesel charton diesel until the market signals a pending upside move. Having said that, prices are extremely attractive and one could do worse than booking at current prices.

Farm Diesel --

  • Our regional average farm diesel price fell another seven cents per gallon on the week.
  • Indiana softened 52 cents, Michigan dropped 39 cents and Ohio slid 30 cents lower. Most others were unchanged. No state posted a higher farm diesel price this week.
  • According to EIA, national distillate stocks rose 3.5 million barrels to 29.4 million barrels above the same time last year and outside the top end of the five-year average supply range.
  • Front-month heating oil futures firmed 5 cents from last Friday's open to open Friday, May 15 at 94 cents.
  • Our farm diesel/heating oil futures spread still indicates near-term downside potential for retail propane price chartfarm diesel

Propane --

  • Our regional average propane price softened a nickel per gallon on the week.
  • Indiana led declines falling 40 cents as Ohio shucked 20 cents per gallon. All other states were unchanged on the week.
  • According to EIA, national propane stocks firmed 2.25 million barrels in the week ended May 8. Currently, LP stocks are running 4.511 million barrels above the same week last year.

Fuel
4/27/20
5/4/20
Week-over Change
Current Week
Fuel
Farm Diesel
$1.84
$1.60
-7 cents
$1.53
Farm Diesel
LP
$1.34
$1.19
-5 cents
$1.14
LP

Farm diesel heating oil futures spread chart

 

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