NASHVILLE, Tenn. (RFD-TV) — Input costs are still uncomfortably high, but fuel prices have held steady for most of the harvest. Experts at Gasbuddy.com point to lower oil prices, saying they are being reflected in gas and diesel costs.
“Motorists could get a little excited at the prospect of seeing gas prices continuing to fall nationally,” said Patrick Haan with GasBuddy. “The national average is down nine cents from last week. It stands just two cents from falling below that $3 a gallon mark, something that we haven’t seen on a weekly basis, really, since the pandemic. So, by all metrics, oil prices are falling, gasoline prices are falling, and diesel prices are falling. Of course, this coincides with the time of year when this usually happens in the fall. Prices do tend to fall.”
As of Friday, October 17, AAA reports the national average for a gallon of diesel is around $3.64, which is six cents less than a month ago but still three cents more than this time last year. A gallon of gasoline right now runs around $3.05 nationwide.
Having a good read on fuel prices is a must during harvest, but one analyst says grain farmers should also be watching the oil markets.
“I think you’ve got to keep your eye on the crude market, especially in the grain space. These grains, corn, milo -- they’re an energy product as well,” said xxx. “We’ve had strong ethanol margins currently, and that’s a big demand engine for corn and milo consumption. Got to watch these energy prices and make sure they hold in there. If they drift too low or if corn rallies too strongly, that could hamper those margins on the ethanol front.”
Right now, farmers and ranchers in Oklahoma are seeing the lowest diesel prices in the country, averaging $3.12 a gallon, and Hawaiian producers are paying the highest per gallon at $5.11.
Corey Rosenbusch with The Fertilizer Institute joined us to discuss supply chain disruptions and what farmers should watch as global tensions impact fertilizer markets.
