Record Diesel Surge and Worsening Drought Squeeze Oklahoma Producers as Cattle Demand Holds Steady

A historic spike in farm diesel fuel alongside deepening drought conditions across the state is tightening margins for producers, even as cattle markets held firm demand through mid-September. According to the Oklahoma Department of Agriculture, Food & Forestry market report released Tuesday, farm diesel surged 72 cents over the past two weeks to an average of $5.44 per gallon—surpassing the previous record set in 2022—while severe-to-exceptional drought now grips more than 85 percent of the state, spurring heavy demand for supplemental feed and hay while cash wheat bids eased slightly across regional elevators.

See this week’s Oklahoma Market Report.

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