Slide 3 of 15
Notes:
In order to understand markets you also have to look at supply and demand. First, demand or who uses propane.
For the most part, the major components of propane demand are residential, chemical, farm, and industrial.
Combined heating and chemical demand account for about 76 percent of total propane demand. These sectors generally co-exist, with chemical demand generally lower during the peak winter months when heating demand and prices are much higher.
Ordinarily, agricultural demand does not impact regional propane markets except when unusually high and late demand for propane for crop drying combines with early cold weather to cause greater-than-normal demand.
We will be watching the agricultural sector, since the Agriculture Economic Research Service has predicted a record corn crop this year.
