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Trade disputes could impact propane prices

The director of propane marketing for CHS says trade disputes could add a wrinkle to prices.

Dennis St. Aubin tells Brownfield China imposed tariffs on U.S. propane in August.

“So as we look at propane being a global commodity, and the U.S. being the major producer of propane, we’re seeing that gallon move throughout the country in different ways than what we’ve experienced in the past.”

He says that change will probably lead to more price variability.

“We’re certainly not looking to cause alarm with those types of things that would maybe cause concern around supplies in the Midwest for heating and crop drying.  We certainly feel we have the supplies to take care of our customers just due to the production we have domestically.”

St. Aubin says his concern is for customers who don’t have inventories on hand in the event a demand spike causes prices to soar.

He adds most farmers have already secured propane needs for this fall.