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.
A rescheduled WASDE, China’s soybean squeeze, barge bottlenecks, and premium beef demand all collide this week — with cash decisions, basis, and risk plans on the line.
November 03, 2025 09:23 AM
·
High milk production and soft retail demand are squeezing prices and margins — making careful feed and risk management essential through year-end.
November 01, 2025 06:54 AM
·
Market analyst and friend of the show, Shawn Hackett, says Brazil’s shifting use of crops for biofuel production is a significant factor.
October 31, 2025 01:17 PM
·
Rabobank’s outlook signals a tightening margin environment, emphasizing the need for cost control, trade stability, and clearer policy signals heading into 2026.
October 31, 2025 11:44 AM
·
Chris Bliley with Growth Energy discusses ongoing concerns about U.S. ethanol exports and the expansion of market access promised under the Phase One deal between the U.S. and China.
October 30, 2025 02:30 PM
·
U.S. Senator Roger Marshall (R-KS) shares his perspective on the U.S.-China trade developments and their potential impact on American producers, farmers, and ranchers.
October 30, 2025 12:56 PM
·
Global agriculture is stabilizing after years of price swings, with flat to modestly rising returns expected as productivity offsets slower demand growth.
October 29, 2025 03:35 PM
·
Prepare for softer milk checks into winter, watch cull-cow values and timing, and stress-test cash flow as product prices recalibrate.
October 29, 2025 03:11 PM
·
Cattle markets are collapsing this week, and analysts say that several factors are at play. Consumer beef prices also remain near all-time highs, threatening long-term demand.
October 29, 2025 12:58 PM
·
