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Cost of drying grain probably going up

The cost of drying grain is likely going up as harvest progresses.

CHS Hedging energy analyst Tony Headrick says propane exports remain strong.

“That export channel is expected to continue to remain open for two reasons.  One is that the Dollar is weaker, and number two is that international propane prices are higher.”

Headrick tells Brownfield if a large amount of the U.S crop needs to be dried down, he’s concerned a propane shortage will lead to escalating prices through at least winter.

“What I’m suggesting to my customers and end-users is, even though prices have risen for propane, be proactive and stay in front of it (by) keeping tanks full.  And look into the deferred (contracts) for getting additional coverage from suppliers.”

Headrick doesn’t want propane customers to overreact, but says there are indications that suggest a period of fairly tight stocks over the next few months.