Farm Fuels in Focus: Diesel Steady as LP Firms

Posted on 03/09/2017 10:25 AM

 

  • November 2016 natural gas opened today at $3.01 -- up 2 cents from our last Fuels in Focus.
  • Farm Diesel is unchanged on the week at an average of $1.86 per gallon.
  • November 2016 WTI crude oil opened the day at $47.20 -- $1.13 higher from our last report.
  • October 2016 Heating oil futures opened the day at $1.48 -- up 4 cents from our last report.
  • Propane is up a penny on the week at an average of $1.01 per gallon regionally.

diesel"Farm Diesel -- The majority of states in our twelve state survey were unchanged this week as North Dakota farm diesel firmed a penny per gallon. Minnesota fell 3 cents and Kansas dropped a penny.

We have 100% of our diesel booked for harvest and while we expect short-term price strength, seasonally, we expect farm diesel to fall after harvest activity wanes, placing a seasonal low around Christmas.

  • Distillate inventories reported by EIA fell 1.9 million barrels to 163.1 mmbbl. Stocks are currently 11.5 mmbbl above the same time last year.
  • The regionwide low currently lies at $1.69 in Illinois and the Midwest high is at $2.05 in Indiana.
Farm Diesel 9/28/16
Three Weeks Ago
Previous Week
Change
Current Week
 
Iowa
$1.80
$1.87
Unchanged
$1.87
Iowa
Illinois
$1.76
$1.69
Unchanged
$1.69
Illinois
Indiana
$2.05
$2.05
Unchanged
$2.05
Indiana
Wisconsin
$1.92
$1.92
Unchanged
$1.92
Wisconsin
Minnesota
$1.98
$1.98
-3 cents
$1.95
Minnesota
South Dakota
$1.79
$1.82
Unchanged
$1.82
South Dakota
North Dakota
$1.94
$1.94
1 cent
$1.95
North Dakota
Nebraska
$1.79
$1.81
Unchanged
$1.81
Nebraska
Missouri
$1.67
$1.70
2 cents
$1.72
Missouri
Kansas
$1.86
$1.86
-1 cent
$1.85
Kansas
Ohio
$1.75
$1.83
Unchanged
$1.83
Ohio
Michigan
$1.88
$1.87
Unchanged
$1.87
Michigan
Midwest Average
$1.85
$1.86
Unchanged
$1.86
Midwest Average

Propane

Propane -- Nine of the twelve states in our propane price survey were unchanged this week. North Dakota firmed 12 cents per gallon to lead gains as Iowa added 2 cents. Missouri fell 2 cents per gallon.

No change to our propane outlook except to say that persistent wet weather in areas nearly ready to harvest will mean increased demand for propane for grain drying. If you have not yet booked propane for such purposes, get on the stick and book 100% of harvest needs at current prices before demand adds short-term support.

  • According to EIA, last week, national propane inventories firmed 1.515 million barrels -- now 4.523 million barrels above the same time last year at 103.264 million barrels.
  • The regionwide low is at $0.85 per gallon in Nebraska and the regionwide high is in Ohio at $1.20.
LP 9/28/16
Three Weeks Ago
Previous Week
Change
Current Week
 
Iowa
$0.91
$0.89
-2 cents
$0.91
Iowa
Illinois
$1.05
$1.16
11 cents
$1.16
Illinois
Indiana
$1.14
$1.14
Unchanged
$1.14
Indiana
Wisconsin
$0.99
$0.99
Unchanged
$0.99
Wisconsin
Minnesota
$0.91
$0.91
Unchanged
$0.91
Minnesota
South Dakota
$0.95
$0.95
Unchanged
$0.95
South Dakota
North Dakota
$0.89
$0.89
Unchanged
$1.01
North Dakota
Nebraska
$0.83
$0.85
2 cents
$0.85
Nebraska
Missouri
$1.02
$1.02
Unchanged
$1.00
Missouri
Kansas
$0.94
$0.94
Unchanged
$0.94
Kansas
Ohio
$1.20
$1.20
Unchanged
$1.20
Ohio
Michigan
$1.10
$1.09
-1 cent
$1.09
Michigan
Midwest Average
$0.99
$1.00
1 cent
$1.01
Midwest Average

 

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