NASHVILLE, TENN. (RFD NEWS) — Energy markets are sending conflicting signals to agriculture, with lower long-term fuel prices but continued short-term volatility in heating and fertilizer inputs.
The U.S. Energy Information Administration’s February Short-Term Energy Outlook (PDF Version) projects Brent crude oil averaging about $58 per barrel in 2026 and $53 in 2027 as global production continues to outpace demand and inventories build. Despite recent geopolitical disruptions, expanding output worldwide is expected to keep diesel and fuel costs generally softer over time.
Natural gas tells a different story in the near term. The Henry Hub price averaged $7.72 per MMBtu in January after winter weather tightened supplies. Storage levels are now projected to end winter about 8 percent lower than previously expected. Prices should moderate later as drilling increases, with averages near $4.30 this year and $4.40 in 2027.
U.S. natural gas production is forecast to grow 2 percent in 2026, while rising solar generation and modest coal use help meet expanding electricity demand from industry and data centers.
Lower propane prices are also expected as higher gas production boosts supply.
U.S. Secretary of Agriculture Brooke Rollins said permanent access to the higher ethanol blend would provide farmers with much-needed certainty while supporting domestic crop demand.
January 13, 2026 01:31 PM
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Larger grain stocks increase supply pressure, but strong fall disappearance — especially for corn and sorghum — suggests demand remains an important offset.
January 13, 2026 01:02 PM
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Record corn and sorghum crops boost feed grain supplies, while reduced soybean and cotton production tighten outlooks for oilseeds and fiber markets.
January 13, 2026 12:53 PM
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Food prices increased in December, but not as much as expected, according to the latest Consumer Price Index from the U.S. Bureau of Labor and Statistics.
January 13, 2026 12:46 PM
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Lewis Williamson with HTS Commodities joined us to provide analysis on the January WASDE report and expectations for grain markets going forward.
January 13, 2026 12:34 PM
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Market reaction was bearish for corn and soybeans, with analysts noting that abundant supplies amid tepid demand could keep price pressure on agricultural commodities.
January 12, 2026 03:51 PM
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Rising adoption of GLP-1 drugs may gradually reshape food demand, with potential downstream effects on protein markets and consumer purchasing patterns.
January 12, 2026 02:38 PM
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Winter Weather, Drought Shape Early 2026 Farm Conditions
January 12, 2026 11:00 AM
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As domestic production and blending slowed, export demand remained a clear bright spot.
January 11, 2026 12:00 PM
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