Propane/Fuel AccountOrder / Pay Account
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Review AccountEnergy Pricing Reflects Global Changes
Aug 27, 2025
While it used to be that energy markets traded solely on the season’s supply and demand, that is no longer the case. World events impact energy pricing.
Mark Grave, Federated’s director of energy, made these observations on the global nature of the market:
“Energy markets are reacting as world leaders gather to negotiate a potential peace agreement between Russia and Ukraine. Russia is second to Saudi Arabia as the largest exporter of crude oil in the world. The elimination of crude oil sanctions is part of the negotiations [for peace between Russia and Ukraine].
“Should some sort of peace agreement take place, we could see soft energy markets through the end of the 2025. That being said, should Russian President Putin fail to come to the negotiating table, tighter sanctions [against Russia] will bring higher prices.”
Based on those realities, and consistent with Federated’s commitment to you, the growers, the Federated energy team “continues to monitor these world events to make sound purchases and secure supply of gas, diesel and propane,” said Grave.
The physical supply of gasoline, diesel, and propane in the Midwest is excellent; there are currently no product shortages (late August 2025).
The ability to rapidly move gallons from supply terminals to grower dryer tanks is the most challenging. “As combines hit the field we need your dryer tanks to be full for a smooth season,” Grave said. Toward that goal:
Predicting prices is a “risky venture . . . even after careful study of the markets, one rarely hits the high or low,” he said, adding, “This is the stance Federated takes:
“Today’s prices are well below the highs established in the last 12 months. The upside risk far outweighs the downside risk. If locking in today’s price fits your plan and hits your target, it appears to be a sound decision.”
Contact Grave with energy-specific questions, or discuss your options with your Federated Agronomist. Either way, be prepared for fall grain drying with a full tank of propane ahead of time.
Mark Grave, Federated’s director of energy, made these observations on the global nature of the market:
“Energy markets are reacting as world leaders gather to negotiate a potential peace agreement between Russia and Ukraine. Russia is second to Saudi Arabia as the largest exporter of crude oil in the world. The elimination of crude oil sanctions is part of the negotiations [for peace between Russia and Ukraine].
“Should some sort of peace agreement take place, we could see soft energy markets through the end of the 2025. That being said, should Russian President Putin fail to come to the negotiating table, tighter sanctions [against Russia] will bring higher prices.”
Based on those realities, and consistent with Federated’s commitment to you, the growers, the Federated energy team “continues to monitor these world events to make sound purchases and secure supply of gas, diesel and propane,” said Grave.
The physical supply of gasoline, diesel, and propane in the Midwest is excellent; there are currently no product shortages (late August 2025).
The ability to rapidly move gallons from supply terminals to grower dryer tanks is the most challenging. “As combines hit the field we need your dryer tanks to be full for a smooth season,” Grave said. Toward that goal:
- Federated is offering a discounted dryer price for August and September fills; these prices will be announced at Discovery Plot Days (this week).
Predicting prices is a “risky venture . . . even after careful study of the markets, one rarely hits the high or low,” he said, adding, “This is the stance Federated takes:
“Today’s prices are well below the highs established in the last 12 months. The upside risk far outweighs the downside risk. If locking in today’s price fits your plan and hits your target, it appears to be a sound decision.”
Contact Grave with energy-specific questions, or discuss your options with your Federated Agronomist. Either way, be prepared for fall grain drying with a full tank of propane ahead of time.