What is in this article?:
Uncertainties abound for corn and soybean production in 2013. Potential drought, crop insurance payouts, and commodity prices are just a few major unknowns. To help growers prepare for the next year, Farm Industry News put together a buyer’s forecast of interest rates and the costs of production inputs and land. Featured here is the 2013 forecast for fuel.
The rest of the input forecasts may be found here:
“We had some pretty high prices this summer and fall and barring any major global event — something that could trigger a spike in prices — we probably wouldn’t tend to see prices get much higher,” says Justin Fuller, director of CHS refined fuels operations and pricing.
But Fuller notes that several unpredictable factors can cause fluctuations in the market.
“We have to take into account several things that affect the market. One of the biggest things is turmoil in the Middle East,” Fuller says. “Incidents that happen in the Middle East tend to have an impact on our own market.”
Fuller also explains that demand plays a significant role in the price of fuel, particularly at certain times of the year.
“With commodity prices going to the levels they’ve been here recently — and crop prices for corn and soybeans have increased quite substantially — when that happens, the demand for fuel is going to go up primarily in the spring and fall,” Fuller says.