Diesel prices might be a bit more kind to farmers’ bottom lines this fall.
According to Jason Schwantz, CHS Senior VP of Energy Sales, “The supply chain is pretty full. Refinery run rates have been running at some historic highs, and the supply chain seems to be in a fairly good spot. I think the economy is playing somewhat of a factor too. I think interest rates are making it a little tougher on the economy, and that is affecting demand. And therefore, I think for this fall season, we’re going to start out in a good position. Now, I think there’s an extremely large crop out there, and how fast it comes in with this warm weather that we’ve been having could be a factor in that.”
While more diesel is currently available due to lower demand, Schwantz says that even when prices are high, growers can take action to save where they can.
“As far as purchasing your fuel, if you like the price where it’s at and it fits into your budget, I would tell you this is a good time to buy. You can lock in some prices. There’s contracting that you can do— is another one. If you’d like the budget number, you can lock in that contract price. Quite frankly, I think the election is going to play somewhat of a balance here. Whether a Democrat or Republican gets in it’s going to have an effect on prices,” he notes. “There’s uncertainty right now with the election, and that could affect prices. Maybe when we come out of this, maybe prices will rise. I don’t know that for a fact, but that has tended to happen in the past.”
