ALERT 1/8/2014: Farm Diesel

January 8, 2014 03:25 AM
 

  • Get current with spring farm diesel coverage in Indiana, other areas check local pricing.
  • Indiana priced below $3.00/gallon, up 8 cents this week to $2.86.
  • Trends suggest annual seasonal low may be earlier than the prior year.

Farmdiesel

Farm Diesel -- We can't let the two dollar handle pass us by in Indiana. We are stopping short of calling a regionwide alert, but that does not mean prices are not right to cover some spring farm diesel in your local area. An upturn in the regionwide averages would signal go-time here, but this week farm diesel softened another 1/2 cent regionally and the downtrend seems to be slowing. According to the charts, if this is the pricing floor for the season, it is about two weeks ahead of last year.

Frigid temperatures have heating oil in high demand. Export demand for distillate fuels is high and the current national supply is behind year-ago and well below the five-year average. If your appetite for risk can handle it, hold off until the chart signals a reversal. We will alert you when it does.

We are currently at 20% on farm diesel for spring. Indiana growers should reward the setback by booking another 30% for spring to bring total coverage up to 50%. Last year we got another setback in late April, and we will look to increase coverage to 100% at that time.

Inputs Position Monitor
NH3
DAP
MAP
K
UAN28%
UAN32%
Urea
Farm Diesel
LP
Natural gas
Fall 2013 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Spring 2014 30% 20% 20% 20% 30% 30% 20%-40% 20% 0% 0%

Prices may vary so, as always, check with your preferred supplier.


 

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