Takeaway

The presenter's key message is that US agricultural producers face mounting pressure from rising input costs and worsening weather. Diesel prices are now just a few cents shy of their 2022 all-time high, while drought conditions have expanded to cover 80% of the continental US and 90% of the South.

What the presenter said

• Diesel prices continue to jump higher this week.
• The average diesel price sat at $5.78 a gallon on Thursday, just a few cents before the all-time high of $5.82 in 2022. [00:07]
• Off-road diesel runs 40 to 60 cents less for farmers. [00:13]
• The US is sinking further into dry conditions according to this week's drought monitor. [00:18]
• Nearly 80% of the continental US is in drought, and 90% of the South is now in drought, which is roughly a 4% increase. [00:22]
• Drought is mostly concentrated in the panhandle. [00:31]
• The USDA has launched a New World Screwworm wildlife page for hunters. [00:36]
• Walmart offered a limited edition rotisserie chicken purse that sold out quickly. [01:00]

Trade ideas

The presenter did not put forward any actionable trade ideas. The market view is one of concern over rising input costs from diesel and deteriorating growing conditions from the expanding drought.

Levels and data cited

Price Levels * Diesel (average): $5.78 a gallon * Diesel (all-time high): $5.82

Data Cited * AAA: Reported the average diesel price for Thursday. * US Drought Monitor: Stated that 80% of the continental US and 90% of the South are in drought this week.