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.
RealAg Radio host Shaun Haney says farmers there are already sounding the alarm about what this could mean for the future of ag research.
February 03, 2026 01:03 PM
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Global pork production is expected to rise in the first half of 2026, despite trade volatility stemming from shifting import policies and swine disease pressures.
February 03, 2026 12:50 PM
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Clearer 45Z rules favor U.S. oilseeds, but final RFS volumes remain critical to locking in demand.
February 03, 2026 12:39 PM
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Even small declines in the calf crop translate into sustained supply pressure, supporting cattle prices over multiple years.
February 03, 2026 12:22 PM
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Economists are also closely watching how policy decisions in Washington could influence markets moving forward. Analysts say deferred futures for corn, soybeans, and wheat suggest markets are operating near break-even levels, not at prices that would encourage expanded production.
February 02, 2026 12:13 PM
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Winter Weather And Markets Reshape Agriculture Nationwide This Week
February 02, 2026 12:04 PM
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Shrinking sheep numbers contrast with gradual goat expansion, signaling tighter lamb supplies but steadier growth potential for meat goats.
February 02, 2026 10:29 AM
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Falling livestock prices, combined with higher input costs, continue to squeeze farm profitability heading into 2026.
February 02, 2026 10:22 AM
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Smaller cow numbers and a declining calf crop point to prolonged tight cattle supplies, limiting near-term herd rebuilding potential.
January 30, 2026 03:42 PM
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