Good morning one and all. Here is the latest we’re hearing related to propane…
I have attached a photo of snow on the ground…this photo comes from eastern Iowa. I have two thoughts on this…the first, a photo like this reminds my wife why she is not displeased we now hang our hates in Tulsa, Oklahoma. She was not fond of the Iowa winters and I became less fond of them over the past few years as I have tried to clear my driveway with a shovel.
More importantly, this always signifies the start of winter to me…when there is snow south of Interstate 80, it’s upon us. For my friends in the Southeast, Indiana, Ohio, Illinois and Pennsylvania, the 4 day surface temp and winds map looks chilly, too:
Demand in the upper Midwest is very strong right now, especially in southern Minnesota as crop drying is combining with some home heating draw. Grain drying remains hyper local, however this latest moisture in the Midwest will keep things moist and in lieu of a widespread hard freeze as of yet, it should prolong the drying season. It’s be a very challenging year to ‘predict’ drying demand, but it would seem like this thing isn’t over and might get ugly in some locations who didn’t get their corn out when the getting was good. A hard frost/freeze is on the way, however.
Crude oil is rallying this morning after trading below $100/bbl yesterday, supported by strong economic news as the US jobless rate fell to five-year lows. Crude inventories remain bearish so you cannot discount that bias in the market, but right now the fundamental demands in propane have crude over in a corner and not as big a factor is it would be in slower demand months.
Get ready…here it comes!