Ag analysts are closely watching the Middle East after threats by Iran to close the Strait of Hormuz. The relatively short marine passageway is vital to global oil shipping, and any disruptions could translate to higher oil prices.
Iran is threatening to close the 90-mile passageway after U.S. attacks on nuclear facilities there. The route is a popular choice for oil shipments, carrying around 20 million barrels of oil each day. Analysts with Hedgepoint say any jump in oil prices will hit shippers first, with fuel being one of the largest costs.
Oil prices are up around 10 percent since earlier this month. AAA currently shows the national average for a gallon of diesel is around $3.69, and one month ago, the same gallon was $3.55.
Related Stories
The American Coalition for Ethanol reacts as the Farm Bill heads to a full House vote — while ethanol expansion, including year-round E15, is left out — as well as the USDA’s pursuit of global markets for ethanol.
Corn demand is rising thanks to ethanol expansion, yet year-round E15 remains missing from the Farm Bill—leaving farmers questioning the policy gap.
ASFMRA’s George Baird shares insight on spring planting progress, acreage trends, and the financial factors influencing Mid-South farmers this season.
Record ethanol demand continues supporting corn markets and rural economies.
Protecting Input Investments: Fertilizer Strategies During a Year of Falling Prices and Rising Costs
Falling commodity prices and rising costs continue to squeeze farm margins. Kip Jacobs with The Mosaic Company addresses fertilizer market pressures, nutrient use efficiency, and strategies growers can consider to protect their fertilizer investment this season.
Kurt Kovarik of Clean Fuels Alliance America joined us to break down the latest developments in the Renewable Fuel Standard rulemaking process and what it could mean for agriculture, energy markets, and rural economies.
