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Lock in propane now

An industry expert concerned about a propane shortage says this is an opportune time for farmers to secure their supply.

Dennis St. Aubin is director of marketing for the propane division of the nation’s largest cooperative, CHS.

“We’re in the middle of July, heading into August.  We’re ahead of the crop (so) let’s get that inventory full.  Make sure you’re taking advantage of the price points that are out here right now before we do see the market react to what we see as a shortfall of inventory heading into the fall/winter timeframe.”

He tells Brownfield propane inventories are running below the five year average mostly because of increased export activity.

St. Aubin encourages agricultural and residential customers to fill up now, otherwise the bottom-line could be negatively affected.

“The prices have been fairly channeled throughout the course of summer so far.  But with the timeframe that we’re working with and the inventories that we’re dealing with, we’re anticipating that market prices are going to become a little bit stronger as we head towards fall.”

He says if farmers are going through four or five propane tanks during a high-demand season like fall harvest, they should consider additional capacity to avoid potential supply challenges.

 

 

 

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