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.
Tight feeder supplies and lower placements indicate continued support for the cattle market, with regional impacts heightened in Texas by reduced feeder imports.
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Jeff Johnston with CoBank’s Knowledge Exchange explains the growing role of Rural America in supporting the nation’s digital infrastructure.
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NRECA CEO Jim Matheson reacts to the U.S. House’s passage of the SPEED Act, which aims to streamline federal permitting for energy and infrastructure projects, and discusses its potential impact on rural communities.
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Cattle markets are watching the Cattle-on-Feed Report for signs of tighter supplies, while USMEF warns limited China access is cutting producer profits.
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Callahan is no stranger to agricultural trade and has been with the U.S. Trade Representative’s office since 2016.
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Record ethanol production, coupled with stronger demand, supports corn use despite tighter margins elsewhere.
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A new maritime biofuels coalition aims to position ocean shipping as a significant growth market for U.S. crops and waste-derived fuels.
December 17, 2025 07:00 AM
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Larger operations maintain cost advantages, while softer equipment sales suggest producers are pacing machinery upgrades amid tighter margins.
December 17, 2025 06:00 AM
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Transportation access, legal disputes, and fertilizer freight costs will directly influence input pricing and grain movement in 2026.
December 16, 2025 01:37 PM
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