Farm fuel prices are coming off 18-month lows that have supported the current price increase. Based on a balanced market, CHS Director of Refined Fuel Sales Neil Hoff expects a steady trend of increasing fuel prices. “With the spring planting season coming up, that is part of the driver. So, we’re starting to see customers come in and forward plan,” says Hoff. “There’s many reasons to fill storage now. Not only from a price perspective, but also from a supply/demand perspective.” Looking at the forward curve in fuel prices, there are some dramatic savings. “When we hit peak demand in April and May, historically that causes prices to rise as demand increases.” Hoff says farmers and ranchers could save dimes instead of pennies per gallon by locking in current prices.
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