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
Farm Bureau Economist Dr. Faith Parum discusses USDA’s efforts to expand fertilizer capacity, signals for farm profitability, and AFBF’s Farm Bill expectations.
A Prop 12 fix made the final Farm Bill text, but amendments for E15 and pesticide labeling will be voted on separately.
Higher biofuel mandates boost long-term crop demand, but a tighter D4 market may pressure biofuel feedstocks and pose new soybean oil demand risks.
According to a tweet from Rep. Anna Paulina Luna, the full House vote on the Farm Bill will be held until lawmakers return from recess.
The House is moving forward with debate on the Farm Bill after a lengthy session in the House Rules Committee cleared the legislation for floor consideration.
House lawmakers push toward a Farm Bill vote as debate grows over E15, Prop 12, and input costs, with farmers seeking certainty and policy updates.
