Record Diesel Prices Fuel Harvest Transportation Costs

U.S. diesel prices have reached a record high of $6.285 per gallon for the week ending September 14, causing concern among farmers and grain haulers.

The national average rose by 31.8 cents in one week and stands at $2.546 above the same week last year.

Distillate inventories were 106.3 million barrels in early September, 13% below the five-year average, due to global supply disruptions such as shipping through the Strait of Hormuz being sharply reduced since the U.S.-Iran conflict began and a major Saudi oil pipeline closure further constraining crude flows.

Higher diesel costs are feeding into transportation expenses as grain movement accelerates, with rail grain carloads 24% above last year and barge grain movement 73% higher during the latest reporting week.