Commodities
US Farm Margins Under Squeeze as Diesel Prices Soar
The diesel to corn ratio has reached its worst level in about 20 years, putting significant pressure on U.S. farm margins at harvest time.
Fuel prices have risen sharply, while corn prices have lost momentum, leaving farmers with little room to absorb the increased costs.
Alex Hodes, StoneX Director Energy Market Strategy, notes that many buyers delayed purchasing diesel in anticipation of lower prices, but instead face higher costs as harvest demand builds.