Fuel prices have been in the news and all we have heard is they are rising. Don’t be so sure! We advised our clients to lock in half of their fuel needs in March and some of them saved more than $3,000. We are not ready to recommend locking in the other half yet. Please look at the attached weekly crude oil price chart. Notice how the weekly price range is working into a wedge. When this happens, the chart always breaks to one direction or the other. If it breaks to the top, hedge the rest of your fuel needs this year. If it breaks to the bottom, then wait as it will go lower. Let the market tell you what it is going to do.
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Editors' note: Moe Russell, Soybean Digest Risk Management Editor, is president of Russell Consulting Group, a farm management agency in Panora, IA.
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