AGRONOMY
Mid-County Coop provides several updates during its annual Pre-Harvest Customer Appreciation Event
By Austen Neaton
Staff Writer
Mid-County Coop hosted its annual Pre- Harvest Customer Appreciation Event on Sept . 19 . Welcoming patrons to listen to a pair of speakers while enjoying a burger or bratwurst .
The event occurred in the co-op ’ s seed warehouse in Cologne , and the featured speakers were Mid-County General Manager Bill Reimers and Winfield United Account Manager Phil Keefauver .
Reimers provided updates on several matters important to customers , such as the state of the diesel fuel and propane markets , and the co-op ’ s progress on paying out equities . Keefauver used his time to speak about the important roles that the agronomists at Mid- County play .
Reimers opened the event by speaking about the diesel fuel market .
“ When it comes to diesel fuel , supply is good and prices are actually pretty good too ,” he said . “ We saw some peaks during the summer and they ratcheted down as time went on when usually it would be the opposite .”
“ What happens is the big hedge funds get in and out of the market ; when you see the market rally , that is typically the big hedge funds getting in , and those are people who are traders and not the end users . Right now the hedge funds are basically out of the market , helping prices go lower .”
Reimers said the market will probably go higher when hedge funds begin buying again , though it ’ s anyone ’ s guess when that will happen . He added that it can be difficult to track hedge fund activity because the reporting we receive is after the fact .
He also said that other factors that could cause the market to rise are hurricanes , and refinery outages , which usually occur in the middle of the harvest season .
The co-op currently has a good supply of diesel fuel on hand for the fall , and are cautious in today ’ s volatile market of buying more gallons than what are needed . A 10-cent drop in the market can have a large impact on us .
Reimers also discussed the state of the propane market .
“ When it comes to propane , the market pricing is basically set for the winter ,” he said . “ We usually start buying in the spring , and then
PHOTO BY AUSTEN NEATON
Mid-County Coop General Manager Bill Reimers shares updates on the diesel fuel and propane markets with patrons of the co-op during its annual Pre-Harvest Customer Appreciaton Event , which took place in the seed shed at its headquarters in Cologne Sept . 19 .
we buy and sell and always stay ahead for our customers . Usually this time of year , most everybody has made their purchases for the season .”
He said the supply and prices are similar to last year , with the latter being slightly higher than a year ago .
“ What can change that is all of the new export facilities in the Gulf of Mexico because they can make propane disappear very quickly if the prices are good overseas .” “ We will see inventories grow when they get heavy fog or hurricanes down in the Gulf of Mexico .”
Like diesel fuel , the co-op tries not to overleverage itself with its propane supply in case the market falls . However , we still have plenty for our customers .
“ We have been adding propane storage for several years , so we can go for several days without a delivery in the middle of the cropdrying season and still make sure that there is a supply for customers ,” Reimers said . “ Having storage for fuels , propane , and fertilizer is very , very critical these days ; everything is just in time , and you can ’ t just get the products like
Patrons of Mid-County Co-op share a burger and bratwurst meal with one another following the updates from Bill Reimers and Phil Keefauver .
you used to , so we are sitting good on propane .”
Reimers also added that fertilizer prices are similar to last year and that the co-op ’ s supply is solid .
Financials
Reimers said that the co-op ’ s financials are in a good spot , allowing it to acquire more as-
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