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Energy markets to remain volatile

Energy markets are expected to remain volatile.

CHS head of global research Nelson Neale says crude oil is a key indicator, with prices around $90 a barrel after peaking near $120 per barrel a few months ago.

“Whether we’re talking about refined fuels or whether we’re talking about propane (and) certainly its relationship with natural gas, I think farmers just need to prepare for continued volatility as we move through the next couple of months and onto the winter season.”

As for next year, Neale encourages farmers to pay attention to market fundamentals.

“As we have always done. But I just think there’s so much more that the farmer has to be aware of and has to pay attention to in order to manage his or her business effectively.”

Neale says commodity and energy markets have a lot of moving parts that haven’t been seen in several years if not ever.