(Jamie) Thanks for staying with us. Kyle and Cinch talk about propane prices, supplies and seasonality of demand and how they impact new propane equipment.
(Kyle Bauer) Hi, this is Kyle Bauer with Cinch Munson. We’re going to talk propane today. We’re in Kansas City, at Trade Talk. Cinch, the news that I think there is about propane right now is that the prices are so good. (Cinch Munson) Yes, prices are extremely good, and actually for this time of the year prices are at great levels, which is all driven by propane supply. (Kyle) There’s a lot of seasonality though, to prices. I assume that means that there’s lot of seasonality in demand? (Cinch) That’s right, yes. Typically the grain-drying season is kind of, I guess, the start to the high demand season for propane. Because then you move into winter, and a lot of propane gets used for home heat, building heat, greenhouses, barns etc. This year coming in we had high supplies already. Grain drying demand wasn’t as high as it has been in the past, corn came in pretty dry out of the field, which is a good thing for a producer, for an ag producer, and which leads to a good situation for people that use propane through the winter. Prices are really good right now. Because of that I’m encouraging folks, whether you are ag producer, a homeowner or both, to talk to your propane marketer about how to take advantage of that situation. Perhaps add additional storage. Get your tanks filled now while prices are good, look at some pricing options. They may lock-in some prices for a longer period. Talk to your propane marketer, look at the markets and see how to take advantage of what’s a really good situation for propane consumers. (Kyle) Truly, because of the low price, there’s been new interest in converting vehicles to vehicles with propane, converting irrigation wells to propane, so using some of that counter-cyclical demand as well. (Cinch) Yes, there’s a lot of new propane equipment on the market, whether we’re talking lawn mowers, vehicles, or irrigation engines, and I really encourage people to take a look at those options. I like to call it a new generation of propane equipment, and it is. Its very good equipment. It’s built from the ground up to run on propane, and it’s efficient, it’s clean, upfront it’s cost effective. And yes, you’re using a lot of that fuel during the summer when propane prices are at their best. Now I say, the long-term outlook on propane is that we’ll continue to see production increase, so the long-term price outlook is generally good. (Kyle) We’re visiting with Cinch Munson; we have been talking about propane. This is Kyle Bauer reporting from Kansas City. Back to you Jamie.
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