Weekly Insights - May 14, 2018


It’s Friday, which is a moot point to anybody in the ag sector this time of year. The temps have dropped to what I would call mid-April weather and different areas have received varying amounts of rain. Typical South Dakota weather.

As I have mentioned the last couple of weeks, geopolitical news is at the forefront of the media headlines and is continuing to drive the market. Along with President Trump pulling out of the Iran nuclear agreement, ConocoPhillips was awarded a $2 billion arbitrary settlement against Venezuela and took control of three of their facilities this past weekend. Iran and Israel have traded rocket fire this week. There is the occasional blurb about supply, such as the fact that there is money to be made exporting diesel to Europe, and because of this, the supply in the US is headed toward a five-year low. It costs 7-10 cpg to ship diesel to Europe and right now there is a 35 cpg premium. Although OPEC has mentioned that they may be looking at adjusting their output to accommodate the loss of production from Iran and Venezuela, the US is the only producer actually increasing production to try and alleviate the shortfall.

Shortly after President Trump made his announcement, the markets took a drop. However, it did not last long enough for anyone to take advantage of it. One other item to mention - the weekly inventory reports reported a significant draw in crude and products. With all of this news tapping the headlines, crude has traded this week at a three-year high.

For our ag producers, construction companies, and anyone else that relies heavily on diesel for their operation, none of this is good news. Will things change? After the political arena dies down maybe. Only time will tell.

A quick note on Propane. It is that time of year again when FCA will doing leak checks and updating the regulators on customer LP systems. Breon Lake, one of our service techs may be calling on you to check/update your system. Please allow him the opportunity to do so. This is for your safety as well as to hopefully prevent an issue in the dead of winter when you need it the most. If there are any questions, feel free to give the office or myself a call.

Have a safe and productive week.
Brian 
 
 
Transport Price Ruby Fieldmaster 7500 gal minimum

Britton Area $2.506**
Aberdeen/Groton Area $2.4822**
Doland Area $2.506**
Forman/Gwinner Area $2.5055**


**Please call for exact pricing as prices are subject to change at anytime without notice.