Crude was steady to slightly higher overnight and has turned neutral to bearish signaling sideways to lower prices are possible in the near term. Fuel was steady to slightly higher overnight and has turned neutral to bearish signaling a short term top may be in or near.
Gasoline was higher overnight and is neutral to bearish signaling sideways to lower prices are possible in the near term. The dollar was steady to slightly lower overnight and is neutral to bullish signaling sideways to higher prices are possible in the near term. The Propane market was higher this morning and is neutral to bullish signaling sideways to higher prices are possible in the near term.
CHS is now offering a weekly grain market newsletter and a bi-weekly agronomy/energy/grain marketing newsletter, sent directly to your email! View last week’s newsletters at the links below and subscribe to one or both here.
Effective on Monday October 30, 2017, CHS Lubricants transitioned to a new supplier for both 55 and 30 gallon oil drums for their Cenex brand oil drums. As part of this important conversion, all drums sold on or after October 30 will be considered one way and will not be eligible for return once emptied. Further more, any drums that are in the market place must be returned though established channels to CHS by June 1st, 2018. After this date window closes, no drum returns will be accepted. CHS values your business so if you have any questions please call Gale Adolph, Energy Manager at 320-325-5466 or 320 815-0730.
For our Minnesota customers there is a new regulations coming into play this year as far as diesel fuel goes. As normal on April 1st diesel fuel delivered must contain 10% bio diesel, then on May 1st it must contain 20% bio diesel till October 1st when it changes back to B-5 for the winter. This means that when fall harvest gets here any diesel fuel customer in Minnesota will have to try and have their tank as low as possible come the end of September so FM B5 can be put into you tank before the cold weather sets in. The B20 will gel up at warmer temps than the B5 or B10. It would be a good idea to start blending your B20 fuel at 35 degrees before it reaches the cloud point (34 Degrees for soy oil) when it will start plugging filters and any blending components will not work very well as the wax crystals are already forming.
With the relatively lower price of propane expected to continue here is a formula to consider if replacing your residential electric water heater. It takes 27 kWh of usable electricity to equal 1 gallon of propane. If your rate for electricity is $.1273 per kWh (which is the national average) X 27 kWh = $3.43 per gallon. The national average for residential propane is $2.01. This means that propane is a better value versus electricity.
Some information concerning SPCC. If your Aggregate Oil and Fuel is greater than 2500 gallons and not more than 6,000 gallons, with no reportable discharge history, you do not need an SPCC farm plan or secondary comtainment by EPA rules. State or local regulations may supersede the Federal EPA so you will need to check out those regulations. For between 6,001 and 20,000 gallons and no tank larger than 10,000 gallons you can self certify with a form that is available on the EPA web site. If you have a 20,000 gallons or more total storage or a 10,000 gallon tank or larger you have to have an SPCC Professional Engineer’s plan. If any questions please call 320-343-9022.
If you have purchased a piece of farm equipment (Tractor, Combine, New Sprayer and a few other motorized pieces, either New or used up to ten years old from date of manufacture.) they may be eligible for the Best extended warranty in the industry. Please contact Gale Adolph @ 320-343-9022 or cell, 320-815-0730 for more information.
It has been a cooler week this week with some rain on the horizon for the Labor Day weekend. Please keep in mind there will be school starting next Tuesday SO WATCH OUT FOR THE KIDS and extra traffic with the busses and those driving to school. The corn is getting to the well dented stage with some of the ears drooping, husks turning white so will be starting to dry down. Some of the beans are starting to turn yellow so I’m sure we will see lots more of that in the near future. As it looks now it should be a fantastic early harvest. Please be careful out there while doing any haying. The equipment used does not treat us humans very well. It might be a good time to layer in a piece of dryer gas. I say a piece simply as no one knows how dry the corn will be when harvest starts. Please call for current pricing. Futures prices are higher this morning. Russia and Saudi Arabia are increasing crude oil production to increase world oil supply, as the sanctions in Iran and lower production from a couple of other oil producers, trying to keep a lid on crude oil prices but at the current time it is not working as Crude is up over the $70 mark. Propane futures were slightly lower this morning. Stay tuned, it could all change by the end of the day.
Hope YOU have a great day!