Thanksgiving groceries may cost more as diesel prices hit records

MarketWatch

Record diesel prices could raise grocery bills by Thanksgiving as freight costs rise, experts say. USDA economists forecast frozen whole hens above $1.74 a pound wholesale in 2026; if that holds, a 16-pound turkey could cost nearly $28, versus $21.50 last year.

AAA put Wednesday's average diesel price at $6.52 a gallon, up from $5.60 a month earlier and $3.69 a year earlier. Dow Jones Energy analyst Denton Cinquegrana linked the latest surge to Ukrainian drone attacks on Russian refineries; he said Middle East tensions and slower shipping through the Strait of Hormuz had also contributed to elevated prices. Marex's Jack Cooney said hauling corn and soybean meal, key turkey-feed ingredients, cost 5 to 7 cents more per bushel since August—a transport-cost increase of at least 5% that could reach retailers in about 45 days.

State Street PriceStats researcher Caroline Coughlin said diesel costs had not yet substantially passed through to consumer food prices; if they do, fresh meat, dairy and produce may be affected first. Supermarket analyst Phil Lempert said most frozen turkeys shipped before diesel's sharpest increases, but fresh birds—preferred by about 10% of customers—begin shipping in early November and are likely to cost more. He said higher transport costs could also make supermarkets' turkey promotions less enticing. President Donald Trump is considering a ban on U.S. diesel exports.

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