Exploring the Energy Market
Mar 27, 2023
Managing energy risks is more important than ever to the coop and our customers. Customers should take advantage of forward contracting options to limit risk and lock in acceptable margins. Additionally, our AFD (Automatic Fuel Delivery) program enables average daily pricing based on monthly consumption, which minimizes pricing risk and volatility.
Long-term crude and diesel forecasts released by the U.S. Energy Information Administration (EIA) have indicated a softening in crude and diesel pricing. However, as we have experienced over the last couple of years, we are only a significant event away from continued volatility. The most recent significant event was the unforeseen banking collapses which drove crude prices to levels not seen since December 2021.
The EIA has noted that global inventories will increase due to the production of liquid fuels to an average of 102.8M barrels per day in 2024 versus 100M barrels per day in 2022. Ongoing concerns related to the Russian invasion of Ukraine, global economic conditions, and Chinese demand will provide uncertainty in the energy forecasts. The basic economic theory of increased supply and reduced demand equals lower prices will remain to be seen.
Read More News
River Valley Cooperative invites agronomy and grain customers to attend the 2024 Ag Outlook Meeting at Rhythm City Casino in Davenport, Iowa. Business partners and spouses are also invited to register to attend.
Agronomy and grain customers of River Valley Cooperative are invited to an evening of agricultural insights and entertainment hosted by River Valley Cooperative and our valued sponsors at Rhythm City Casino in Davenport, Iowa. Join us as we delve into the ever evolving landscape of grain, energy, fertilizer, and crop protection trends.
Following the engaging session, we invite you to enjoy dinner, refreshments, and cheer for your team as we screen the Iowa/Iowa State basketball game. Please save the date and register to attend a memorable evening.
If we look back at planting, we often saw optimal planting conditions and good soil moisture/emergence early on. Most fields planted before May 8th had an excellent activating rainfall for preemergence herbicides around an inch. After those conditions seemed to grow increasingly dry, and other than a few spotty showers here and there, fields really took a toll in the months of June and early July.