Weekly Farm Fuels Bulletin | Fundamentals Suggest Upside Diesel Risk

Posted on 02/27/2018 3:19 PM

 

Farm Dieselfarm diesel chart

  • Farm diesel fell a penny per gallon in this week's regional average.
  • Crude and heating oil futures have rebounded in the past two weeks, threatening to support higher near-term farm diesel prices.
  • Our farm diesel/heating oil futures spread is at 0.41 this week. Our line in the sand is at 0.40. A move below that level indicates building upside risk for farm diesel.
  • We advised subscribers book 50% of expected spring diesel needs last week. Get current to 50% filled on spring diesel as market fundamentals currently favor the upside.

 

Propanepropane chart

  • Our regional average propane price firmed 2 cents on the week led by strength in Kansas as most states remain unchanged.
  • According to EIA, propane supplies fell over the week, but as February draws to a close, we expect national LP stocks to begin to rebound seasonally.
  • This week's regional average LP price is 10 cents above the same time last year.
  • Our early forecast calls for a summer fill price around $1.20 regionally. We expect prices to begin to fall within the next month.

Fuel
2/12/18
2/20/18
Week-over Change
Current Week
Fuel
Farm Diesel
$2.38
$2.38
-1 cent
$2.37
Farm Diesel
LP
$1.40
$1.44
+2 cents
$1.46
LP

diesel/heating oil futures spread


 

 

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