Weekly Insights - September 14, 2018

Summer weather has returned across our trade territory. They are predicting 90 degrees this weekend which is 10-15 degrees above normal. This should help dry the crops. A few beans are trickling in here and there. Yield rumors are 50-60 bushels.

Fuel prices and inventory: If there is nothing else to discuss, fuel price (and what drives it) can always a topic of conversation.  Over the last couple months, fuel prices have risen $0.20. Of course everybody wants to know why and when is the right time to buy. The why is an easy answer. Anything from simple weather issues to complex inventory to political issues can sway the market up or down. 15-20 years ago, if the market moved $0.10 in 30 days, that was impressive. Today's markets can move that much in a single day.

When to buy?  The goal in today's market is a “happy” medium. The chances of hitting the low market every time you buy is very slim. There are certain times of the year that prices are historically lower (mid winter-early spring) and a good time to buy. The rest of the year we are at the mercy of the markets. There may also be the option to contract, but this year the futures prices were not attractive enough for FCA to offer this option. The best option available in my eyes is our AFD program. Your tanks are monitored, always full, consumption billed on a monthly average price, and you pay for what you use, not what is in the tank.

A quick note on supply…my marketers and the articles I read indicate a supply issue this fall. If you need diesel, I recommend getting some in your tank now.

 Have a safe harvest and thanks for your patronage.
 
Brian Beck
Energy Department Manager
Safety Coordinator

Transport Price Ruby Fieldmaster 7500 gal minimum
 

Britton Area $2.5369**
Aberdeen/Groton Area $2.5128**
Doland Area $2.5369**
Forman/Gwinner Area $2.5361**


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

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