Fuels in Focus: Highway Fuels Soften as Farm Diesel Firms

January 22, 2014 07:24 AM
 

 

  • Farm Diesel firms 5 1/4 cents to an average of $3.40 3/4 per gallon.
  • Retail Gasoline softened 1/2 cent during the report week to a national average of $3.327 per gallon.
  • Highway Diesel fuel firms 3/4 cent to $3.910 per gallon.

 

At the open the WTI/Brent crude oil spread narrowed $1.82 to $11.79 with March '14 Brent opening today at $106.99 -- down 19 cents from the previous report -- and March '14 WTI crude at $95.20 -- $1.82 above the previous report week.

Farm Diesel --

Farm diesel moved 5 1/4 cents higher this week to a regionwide average of $3.40 3/4 with 7 of the 12 states in our index unchanged. The biggest move was a 5 cent increase in Indiana to $3.45 with Missouri firming 3 cents of its own to $3.36. Other moves trended 1-3 cents lower.

Farm diesel looks poised to reverse and placed a telltale hook in the weekly price chart on Monday. 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 $3.26 in Ohio and the Midwest high is at $3.58 in Wisconsin.

Farm Diesel 1/22/14
Three Weeks Ago
Previous Week
Current Week
Change
Iowa
$3.31
$3.37
$3.36
-$0.01
Illinois
$3.50
$3.50
$3.50
Unchanged
Indiana
$3.04
$3.40
$3.45
+$0.05
Wisconsin
$3.59
$3.58
$3.58
Unchanged
Minnesota
$3.42
$3.41
$3.41
Unchanged
South Dakota
$3.55
$3.55
$3.52
-$0.03
North Dakota
$3.54
$3.54
$3.54
Unchanged
Nebraska
$3.24
$3.31
$3.30
-$0.01
Missouri
$3.33
$3.33
$3.36
+$0.03
Kansas
$3.37
$3.34
$3.34
Unchanged
Ohio
$3.26
$3.26
$3.26
Unchanged
Michigan
$3.43
$3.43
$3.43
Unchanged
Midwest Average
$3.33
$3.35 1/2
$3.40 3/4
+5 1/4 cents

 

Gasoline-

The retail price for regular gasoline softened 3 cents during the report week to a national average of $3.296 -- 2 cents below year-ago. The East Coast fell 2 cents to $3.388; Midwest retail gasoline softened 5 1/2 cents this week to $3.200/gallon; Gulf Coast down 1/2 cent to $3.103; Rocky Mountain region down 1/4 cents to $3.145 and the West Coast softened 3 1/2 cents to $3.492, according to EIA data.

Highway Diesel --

The national average price of highway diesel softened 1 1/4 cents to a national average of $3.873 -- 3 cents below year-ago. East Coast 1/2 cent higher to $3.946/gallon; Midwest down 2 1/2 cents to $3.830; Gulf Coast highway diesel softens 1 cent to $3.771; Rocky Mountain region 2 1/2 cents lower to $3.860 and the West Coast fell 3 cents to $3.966/gallon, according to EIA.


 

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