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Crude oil production factors are weighing on heating oil futures which will pressure farm diesel near-term if the momentum remains downward. Propane is 11 cents below year-ago and may still have another few cents to give before posting the summertime low.

Our weighted Crop Condition Index shows the corn crop declined by 1.72 points and soybeans dropped 2.35 points from last week.

The Quarterly Hogs & Pigs Report, which showed all categories above expectations, puts more focus on demand.

Distillate supplies are benefiting from increased refinery capacity and utilization, but, as with crude oil, declines in U.S. distillate supplies are keeping a hard floor under heating oil futures, and farm diesel. The first of July is upon us and we expect to book propane during that month.

This bale wrapper sold on a PurpleWave.com auction June 29

LimelightPlayerUtil.initEmbed(‘limelight_player_796706'); Corn is 1 to 3 cents higher and soybeans are around 30 cents higher. But wheat futures have softened. Cattle are higher and hogs are weaker.

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Distillate supplies rebounded this week according to EIA which longer-term should be price negative on farm diesel. Also working in favor of lower diesel prices is WTI crude oil’s rejection of the $50 level.