Cenex® Winterized Premium Diesel Fuels

 

With the cold weather settling in, it is time to start thinking about winter diesel fuel. Cenex® Winterized Premium Diesel product line offers broad coverage to meet your unique needs  – from moderate temperatures to extreme winter cold and everything in between.

Our full line up of Cenex® Winterized Premium Diesel Fuels includes:

Cenex Wintermaster® Winterized Premium Diesel is formulated with an operability of –30° F and a typical cold filter plugging point (CFPP) of –55° F. Cenex Wintermaster® is specifically formulated for the demands of diesel powered equipment in the most extreme winter conditions.

Cenex Roadmaster XL® and Ruby Fieldmaster® Seasonally Enhanced Premium Diesel Fuels are formulated for moderate climates and provide outstanding shoulder season flexibility. Cenex Seasonally Enhanced Premium Diesel Fuels deliver a typical cold filter plugging point (CFPP) of -25° F.

#1 Diesel Fuel with Cenex Premium Diesel Fuel Additive is used to blend down your Cenex® Premium Diesel Fuel tanks during transition from summer to fall/winter, helping ensure additives remain at proper levels. Ideal for blending down bulk tanks, retail fueling site tanks and customer storage tanks. Contact our energy specialist today with any questions.

Originally posted on “In the Know” CHS

The Importance of Premium Quality Tractor Hydraulic Fluids

Today’s agricultural equipment is expected to work harder than ever before—covering more acreage and running for longer hours to get the job done. With the amount of stress equipment must handle, a high-quality lubricant is crucial for protecting metal components from extreme field conditions.  

Using a premium quality tractor hydraulic fluid (THF), provides customers with the peace of mind that their equipment is protected from the beginning of harvest to the end. But what does the term “premium” really mean?

A premium quality THF is engineered with only Group II, Group III or PAO Group IV base oils, along with advanced additive packages and viscosity index improvers. By blending high-quality ingredients in a precise formulation creates a well-balanced, stable product to withstand and protect against the harsh elements of the field.

The Cenex® branded line of THFs, Maxtron® THF+ and Qwiklift® HTB® are engineered with premium quality ingredients to provide:

  • Enhanced oxidation stability
  • Superior wear protection for both gears and hydraulic pumps
  • Excellent shear stability
  • Robust seal and O-ring protection to prevent leakage
  • Outstanding rust and corrosion protection

To explore more on the premium benefits and features of the Cenex branded line of THFs meet with our CHS Larsen Energy Specialists.

Cenex® Gift Card Starts November 1

Starting November 1, 2019 through February 28, 2020, end-user customers can earn one $50 VISA® gift card for every 125 gallons of lubricant and grease products purchased.

Eligible lubricant products include:

  • Irriflex®
  • Maxtron® DEO
  • Maxtron® Enviro-EDGE®
  • Maxtron® GL
  • Maxtron® THF+
  • MP Gear Lube
  • Qwiklift® HTB®
  • Superlube 518®
  • Superlube TMS®

Eligible grease products include:

  • Corn Head Grease
  • HD Moly Xtreme
  • Poly-Xtreme®
  • Maxtron® EP
  • Blue Gard® 500+™
  • Fluid Gear Grease
  • Molyplex 500+
  • ML 365®
  • Red Protect XT®
  • Maxtron® FS

For more information or to place a lubricant order please call your Energy Specialist today. CHS Larsen Co-Op thanks you for allowing us to be your Cenex® lubricants supplier.

Energy Update – Going into Harvest Season

Unless you live completely off grid, you have likely heard about the drone attacks in Saudi Arabia.  These attacks took out half of the supply of the worlds largest oil processing facility.  The markets quickly reacted on Monday, posting a gain of over $8/barrel by day’s end.  Gasoline & diesel both showed almost a 10%  value increase to end the day. 

By 9 a.m. Tuesday morning, the Saudi Energy Minister held a press conference, and to everyone’s surprise he stated that the crippled processing facility should be completely restored in 14-21 days.  Within 10 minutes of this news hitting the streets, crude took a 180 degree turn, taking back almost 40% of Monday’s gains.  The crude market continued to fall over the day, ending $3.56 in the red.  Gasoline followed in crude’s footsteps, taking back more than 50% of the gains it saw the day before. 

Seems like we were on the right track, huh?  Well, though we were settling down geopolitically, the US gulf coast had different plans.  Looks like Texas is in for a little tropical storm.  TS Imelda started forming right off the gulf coast.  Eastern Texas refineries are preparing for some pretty heavy rain and flash flooding.  This has the potential to not only hinder refinery production, but there is a pretty big possibility that the Houston ship channel could be closed to marine traffic.  This is just plain old bad timing. 

Because crude oil typically reacts more from worldwide events, it continued to retreat over the next 24 hours, taking back 65% of Monday gains.  Gasoline followed crude retreating with a pretty significant loss.  But locally, diesel fuel is reacting to not only the drone attacks, but the fear of what Tropical Storm Imelda may bring to Texas’s eastern coast.  By the time final values came out Wednesday night, diesel had climbed 20% since last week’s close. 

Typically, we see higher diesel prices in the fall due to supply/demand during harvest season.  Because of the poor planting season, I think marketers expected a flatter market than normal.  However, taking the drone attacks, Tropical Storm Imelda, all of the sanctions recently put in place with China & Iran and the interest rate cut as of yesterday, fall harvest season may be more volatile than anyone could have imagined.  Hold on tight, we may be in for a wild ride!

Written by Kim Leisner, Energy Sales Manager

Are You Prepared for the Future?

Back when I was a kid, it seemed like you couldn’t throw a stone without hitting a small family farm.  Single family farms past down from generation to generation-they were everywhere!  Raising just enough crops and cattle to keep the family fed, with a little extra to sell and make a decent living.  The small Husband/Wife type of farms are becoming a thing of the past.  Today’s farms are faced with the fact that they must continue to grow larger in order to keep up with the competition.  It is not only a trend, it has become a necessity!

As all farms grow, they obviously buy/rent more property, build new buildings or put additions on to existing buildings to store, not only your additional livestock, but your added equipment necessary to keep the operation running. 

During these continual times of growth, the fuel storage supply can get easily overlooked.  I have come across customers that have had the same 1000 gallon tank for fueling their tractors since their folks started the farm back in the 50’s.  In the 50’s they had two tractors using about 100 gallons a week.  They now have half a dozen tractors, a couple combines and endless other small pieces of equipment that are still using that single 1000 gallon tank.  They now can use up to an entire tank in a day or two during planting and harvest!

This kind of usage with a tank that size can become very stressful.  So much time spent, worrying about supply & contacting the fuel company trying to get extra deliveries, just to avoid downtime.  All of this stress could be easily eliminated by adding a second tank. 

By doubling the capacity at your farm, you are not only easing stress of supply concerns, but you could save a little money too!

Call your local Energy Sales Representative today and let them show you how you can benefit from adding fuel tank capacity to your operation.

Financing is also available for our members.

Written by Kim Leisner, Energy Sales Manager

Plan Ahead to Purchase Cenex® Grease this Summer for Gift Cards

Starting June 17 through August 16, 2019, end-users can earn VISA® gift cards on qualifying Cenex® grease products. End-users will receive a $15 gift card for every qualifying 4-10 pack or 35-pound pail purchased during the qualifying time frame.

Customers may also receive a $50 VISA gift card for every qualifying 120-pound keg purchased during the promotional window. Qualifying grease products include:

  • HD Moly Xtreme
  • Poly-Xtreme®
  • Maxtron® EP
  • Blue Gard 500+™
  • Molyplex 500+
  • Maxtron® FS
  • Red Protect XT™
  • ML 365®
  • Fluid Gear Grease
How it works:
  1. Provide a copy of the redemption form to the end-user to submit their claim. You can get these forms from your Certified Energy Specialist
  2. End-user completes the Summer Grease for Gift Cards redemption form, attaches required receipts, and mails it to CHS post-marked no later than September 16, 2019.

Questions? Contact your CHS Larsen Co-op representative.

Crop Drying LP Contract

CHS Larsen Coop’s Energy Team: Keeping Up with the Needs of the Modern Farmer.

Winter is finally over… well kind of… and spring is in full force… sort of.  As we quickly enter planting and growing season, drying those crops will definitely be on the minds of most.

  • How many bushels will I dry this year?
  • How much propane will I need?
  • How much is this going to cost me?

Today’s farmer have enough stress to deal with daily, without the concern of budgeting for the unknown. Helping farmers control costs has always been a priority for CHS Larsen Coop.   In the past, we have allowed farmers the opportunity to add their crop drying gallon needs to their winter heating contract.  In an effort to evolve and take the savings one step further, CHS Larsen Coop is extremely proud to offer a CROP DRYING CONTRACTS!

Details of the new CROP DRYING CONTRACT are simple.  Contracts will run 09/01/19 – 11/30/19, which is the prime drying time.  You may lock in as many gallons as you need for drying during that time frame, while taking advantage of pricing based off of a lower demand and typically higher supply.  This will translate to great savings for our Agricultural customers!

We would still urge customers to lock in their winter propane needs as necessary.  But I believe the new CROP DRYING CONTRACT will be an excellent addition to our already great contracting programs!

Please contact your local energy sales team member for more information on how we can help you plan for fall.

Written by: Kim Leisner, Energy Sales Manager

Let’s Talk Tariffs

Unless you live under a rock or North of Hwy 64, like me, I am sure that you have seen an article or heard a news report about the US/China trade war.  Talk of new tariff’s on Chinese goods have been in and out of headlines since the initial tariff taxes of 10% on most goods were imposed last fall.  But last week this trade war ramped up to the next level when trade talks stalled, and an additional 15% tariff tax was added to goods that were already carrying the initial 10% from 6 months ago.

Although there has been a great deal of “tariff talk” lately, some may not exactly understand what a tariff really is and how it will affect our industry.  Everyone has their own opinion, mostly depending on their political affiliation.  So, rather than quoting a bunch of headlines from CNN to Fox news, let’s just do a brief dissection of the meat of this trade war so you can form your own opinion!

Let’s start with….

WHAT IS A TARIFF?  A tariff is a special fee that is charged to the corporation that imports certain products from other countries.  Like Walmart for instance, when they order a whole bunch of Haier TV’s or that nasty frozen tilapia fish they sell; the products come into one of our 328 US ports of entry for inspection.  Upon inspection Walmart will get charged a tariff or “duty” fee for the release of the goods.  US and custom border agents collect the fees that go directly to the US Treasury.  By the way; don’t eat that Chinese tilapia, it is like poison; but that is a story for another day…moving on.

ARE TARIFF FEES CHARGED ON ALL IMPORTS?  96% of all imported products are charged a tariff fee, with the average rate at 2%.  Currently, China is the highest rate at 25%; bumping the Bahamas out of the top spot, with a current fee of 18.56%.  Coincidently, the current duty fee to China are only about ½ the size of the 59% fees that were implemented back in the 30’s during the great depression. 

WHY CHARGE TARIFF’S?  Tariffs are charged for a couple reasons.  The major reasons are to generate income for the government and to protect the US manufacturing industry.  For instance, if there were no tariff fees on BMW, a new three series would cost about the same price as a Ford Focus…and that is just not right!  This is not something that Ford wants or can financially handle.  So, basically it puts the US on a more even playing field with other countries.  In theory, it keeps US manufacturer successful, which keeps the US workforce gainfully employed.

HOW WILL THE TARIFF’S AFFECT US?  Everyone has a different view on this, because a few things can happen.  Product prices could go up-> retail and manufacturing facilities may look at temporary lay-offs to cut expenses…but on the flip side-> American made product sales could soar -> US manufacturing facilities may have to increase their workforce due to new orders?

On the energy side, China was one of our biggest exporters of propane. Since the start of these tariffs, way back in September 2018, China has completely slowed their orders and are now at a slow trickle.  This has caused inventories to rise throughout the winter and I am sure we will see some big numbers this summer as usage throughout the Midwest declines.  Typically, high inventories lead to lower pricing; unless the transportation services decide to take a bigger piece of the pie and raise their fees (supply and demand). I am not sure if these savings will ultimately make it to the consumer or not?

This may be an interesting summer.  With this current trade situation and the expiration of OPEC’s production cuts, we may see some 1st in the energy sector.  Buckle up folks, I think we are in for a fun ride!

Written by: Kim Leisner, Energy Sales Manager

2019 First Quarter Energy Update

We rang in the new year with the lowest crude oil values since August of 2017.  To our surprise, those values remain the lowest seen this quarter.  Slow and steady, just like a turtle crude oil managed to sneak in a 23% gain in values over the past three months.  Diesel and Gasoline followed crude oils pattern, just like the good soldiers that they are.  Both increasing roughly 25%, gasoline gaining a bit more than diesel.

So, why the drastic change and such volatility in the past three months? 

To figure this out we need to examine the factors that cause market movement.  So, let’s look a little closer at supply/demand and the economy.

Over the past 18 months OPEC has managed to make headlines with their continued threats of production cuts.  There has been quite a bit of skepticism regarding the actual follow through of these cuts.  In the past, greed has taken over and most of the nations that did agree to cut production have failed miserably.  Over the past 6-9 months however, OPEC and non-OPEC countries have steadily decreased their production and have managed to cut 1.2 million bpd.  This 3% total cut in oil production has managed to drive values up almost 25%.  Though the US continues to ramp up its production, these imports, or lack thereof are killing us.  Every so often, the President will take to twitter and demand that OPEC discontinue their cuts.  This is usually enough to bring crude oil values down a buck or so, but unfortunately it seems to be short lived as the market rebounds a day or two later. 

As much as President Trump tries to help with his tweets, the new jobs created as well as the overall confidence in the US economy that have become the norm under his leadership are only helping push crude oil values up.  US unemployment is at an all-time low of 3.8%.  We have watched the DOW’s steady incline over the past few years; going up over 30 points in the past three months.  The Federal Reserve has also taken advantage of the stronger economy outlook, raising interest rates several times in the past year; from 1.7% to 2.5%- 1/4% of this growth occurring within the last four months.  Globally, things are not as strong; and this may be our only saving grace.  Considered to be one of the foremost developing nation, China, was projected to have extraordinary growth throughout 2019/2020.   Well, they are a mess!  Their projected growth figures have been cut three times this year, with more to come. 

I honestly don’t know that we will see a lot of change over the next three months.  But, as the OPEC cut agreements get closer to their maturity dates, I think we may see some excitement.    

Written by Kim Leisner, Energy Sales Manager

Take Action During & After Snowstorms

This winter continues to dump snow all over Wisconsin. We as your propane provider are doing everything we can to keep your propane tanks full and safe!

As a home or business owner we also ask that you do your part to keep your propane equipment safe. To the left you can read some great actionable items to ensure your safety this winter.

Please pay close attention to the last tip about keeping clear driveways and pathways to propane tanks! This is extremely important as our delivery drives need to be able to get to your tanks.

If you’d like to view the entire “Safeguarding Your Home for Winter” document you can do so by going to propane.com

If you are unsure of any safety issues with your propane please feel free to contact our customer services reps at 866-455-7200.

© 2019 CHS Inc.