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The cost of red diesel has rocketed since the start of October, with quotes rising by as much as 20p/l at some fuel distributors.
Earlier this week, price quotes for a delivery of 2,250 litres of red diesel ranged from highs of 120p/kg to 124p/kg, excluding VAT, to lows between 116p/l and 118p/l.
Back in late September, quotes for the same quantity of red diesel were typically 98p to 102/l, excluding VAT.
The rise in fuel costs are partly linked to currency in the wake of sterling falling in value against the US dollar, making it more expensive for UK-based fuel companies to import oil.
Crude oil has also increased in value recent weeks, rising from $84/barrel in late September to $98/barrel late last week.
Oil price has trended downwards in recent days, settling around $95/barrel midweek, and some merchants indicate this should translate to some easing in diesel prices.
However, last October a delivery of 2,250l of red diesel cost farmers just over 70p/l and it had been 65p/l in the previous month. This means red diesel at current levels is up 50p/l on last autumn, which is a 70% increase.
White diesel
Derv has also seen prices surge in line with red diesel, although there is value to be had by pricing around.
Quotes for a delivery of 1,000l this week ranged from 150p/l to 170p/l, excluding VAT, up from 145p/l to 149p/l back in September. Derv is currently running 50p/l to 60p/l above the equivalent value last October.
Feed
Outside of fuel markets, there is no good news for farmers buying feed this winter. An escalation of hostilities in Ukraine has spooked grain markets, driving spot prices upwards.
Spot price for dried barley jumped to £312/t on Monday, although it had slipped by £5/t by Tuesday evening. At the outlined price, barley purchased on spot this week would cost close to £340/t on farm.
Maize meal is also up, rising to £315/t on spot markets which would equate to around £350/t on farm. Distillers has moved to price on application to purchase as a result of disruption in shipping channels in the US.
Soya is trading above £500/t on spot markets and likely to cost close to £550/t on farm. Soya hulls are priced at around £350/t with sugar beet pulp trading close to £385/t.
Fertiliser
Meanwhile, sales of fertiliser have slowed after a flurry of orders were placed by local farmers in September. Quotes for CAN are in the region of £790/t to £800/t, with urea costing £100/t more.
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