Diesel prices in the Midwest have hit a three-year seasonal lows as farmers face another round of harvest delays because of adverse weather conditions.
Already this year, the Midwest has faced significant weather conditions that delayed harvest conditions, including the Polar Vortex and extreme flooding this Spring.
According to Reuters, diesel demand traditionally rises during harvest season because farming equipment and trucks transporting product use the fuel. However, average distillate product supplier in the U.S. has been down 7% over the last four weeks.
Currently, farmers are seeing another round of heavy rains and low temperatures, further delaying harvests that have already been postponed by nearly a month this fall. The fall harvest season runs from late September through November.
Reuters reports that delays is causing spot diesel prices to drop in the region. Ultra-low sulfur diesel prices in Chicago and Tulsa are at their lowest since 2016. Heating oil futures are ranking in at $1.9208 a gallon, and diesel prices in Chicago are at 8.25 cents per gallon below futures.
Meanwhile, only 13% of corn was harvest in Illinois the week of Oct. 6, down significantly compared to 61% during the same time last year. In Iowa, only 3% has been harvested, compared with 14% last year.