Favorable Diesel Outlook From CHS

MID-WEST FARM REPORT - MADISON

Jason Schwantz, senior vice president of energy with CHS, says he has a favorable outlook for diesel prices into the fall for two reasons. One is that refineries have been running at "historical highs" increasing supply. The other is that a weaker economy is keeping diesel demand stagnant, meaning the supply stays high. Diesel prices could rise if this season's crop is big and comes on fast with this warm weather. Even when diesel prices are favorable, growers can still take action to protect their bottom line from potential price hikes. If you like the price where it's at, buy it - lock it in or contract the price. Schwantz thinks the outcome of the election could create a volatile diesel market.

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