Fuels in Focus: Farm Diesel Levels Off

January 28, 2014 04:49 AM
 

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  • Farm Diesel unchanged at an average of $3.40 1/2 per gallon.
  • Retail Gasoline softened $0.001 during the report week to a national average of $3.326 per gallon.
  • Highway Diesel fuel firms 3 cents to $3.904 per gallon.

 

At the open the WTI/Brent crude oil spread narrowed 53 cents to $11.26 with March '14 Brent opening today at $106.92 -- down 7 cents from the previous report -- and March '14 WTI crude at $95.66 -- 46 cents above the previous report week.

Farm Diesel --

Farm diesel was unchanged this week at a regionwide average of $3.40 1/2 with 5 of the 12 states in our index unchanged. The biggest move was a 13 cent spike in Ohio to $3.39 with Illinois falling 6 cents to $3.44. Other moves trended 1-4 cents lower.

Farm diesel looks poised to reverse and leveled off above the downtrend this week. Trends suggest this is the annual winter runup in pricing and we recommend booking a portion for spring at current prices. Another predicted spate of cold weather will continue to pressure distillate supplies in the form of home heating oil and threatens to elevate regional farm diesel pricing. We are currently 50% filled for spring farm diesel.

The technical data suggests we may get another low in early spring just in time to bring coverage up to 100%, but we recommend filling up to 50% for spring on the current price break.

The regionwide low currently lies at $3.30 in Nebraska and the Midwest high is at $3.58 in Wisconsin.

Farm Diesel 1/28/14
Three Weeks Ago
Previous Week
Current Week
Change
Iowa
$3.37
$3.36
$3.35
-$0.01
Illinois
$3.50
$3.50
$3.44
-$0.06
Indiana
$3.40
$3.45
$3.45
Unchanged
Wisconsin
$3.58
$3.58
$3.58
Unchanged
Minnesota
$3.41
$3.41
$3.40
-$0.01
South Dakota
$3.55
$3.52
$3.52
Unchanged
North Dakota
$3.54
$3.54
$3.53
-$0.01
Nebraska
$3.31
$3.30
$3.30
Unchanged
Missouri
$3.33
$3.36
$3.32
-$0.04
Kansas
$3.34
$3.34
$3.34
Unchanged
Ohio
$3.26
$3.26
$3.39
+$0.13
Michigan
$3.43
$3.43
$3.44
+$0.01
Midwest Average
$3.35 1/2
$3.40 1/2
$3.40 1/2
Unchanged

 

Gasoline-

The retail price for regular gasoline softened $0.001 during the report week to a national average of $3.295 -- 6 1/4 cents below year-ago. The East Coast fell 1 1/4 cents to $3.376; Midwest retail gasoline firmed 2 cents this week to $3.219/gallon; Gulf Coast down 1 cent to $3.092; Rocky Mountain region down 1 cent to $3.134 and the West Coast softened 1/2 cent to $3.486, according to EIA data.

Highway Diesel --

The national average price of highway diesel firmed 3 cents to a national average of $3.904 -- 2 1/4 cents below year-ago. East Coast 5 cents higher to $3.996/gallon; Midwest up 4 1/2 cents to $3.874; Gulf Coast highway diesel slightly higher at $3.772; Rocky Mountain region 1/4 cents higher to $3.863 and the West Coast firms 1 1/4 cents to $3.979/gallon, according to EIA.


 

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