Propane Market Update

Allied Cooperative recently installed a new 30,000 gallon propane tank at our Plover fertilizer plant.  This tank was installed in order to provide the best service possible to our northern customers.  If you would like more information on our propane programs or would like to discuss your contracting needs for the upcoming season please contact us.

Right now, propane inventories in the Midwest and Canada are near the bottom of their 5 year averages and have been since April. Looking ahead, inventories appear to be the driver for price direction. Summer fills will continue, average dryer gas usage is probable, and many companies that buy contracts are currently light on them, which means that that will pressure the market upwards once they start buying. My recommendation is to consider your needs for the next 12 months, as there appears to be more potential upside than downside. Please call with any questions and to discuss.                          — Rob Hutchens, Certified Energy Specialist

ploverpropanetank

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