With more crops leaving the fields every day, farmers are preparing to fire up the dryers and get those grains to market. Analysts say the outlook for propane needed to run those dryers is much better than last year.
The Propane Education and Research Council (PERC) tells DTN propane stocks are significantly higher this year over last. Right now, the average wholesale price is under $1 per gallon.
Last year at this time it was around $1.50 per gallon.
Another good sign is that this year’s harvest shaping up to be a normal drying season. PERC representatives said it does not appear there will need to be much crop drying. However, they warn there is one wildcard to consider. Winter is coming.
Extreme cold temperatures this winter could raise demand for propane, and in turn, raise prices.
