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The Weekly Fill-Up | September 29-October 3
Powering Through Harvest: This Week’s Energy Market Update for SVC Patrons
As harvest activity accelerates across eastern South Dakota, the demand for fuel, lubricants, DEF, and propane is climbing right alongside it. For patrons of Sioux Valley Coop, understanding the shifting dynamics of these essential inputs is key to staying ahead of costs and keeping operations running smoothly. This week’s market signals show modest movement in diesel and propane, ongoing tightness in DEF, and steady but crucial attention needed for oils and lubricants.
Diesel and Fuel Markets
Diesel continues to see upward pressure as combines and grain-hauling equipment shift into high gear. Nationally, the Energy Information Administration reported that average prices nudged slightly higher in late September, with the Midwest region holding steady compared to the rest of the country. Here in South Dakota, diesel has hovered near $3.70 to $3.80 per gallon in recent weeks. While not dramatically higher than last month, these costs remain elevated compared to a year ago.
The main drivers of this trend are harvest-related demand spikes and broader global market conditions. Oil prices have been swinging as traders weigh concerns about oversupply against potential disruptions in production and transport. Even small changes in global benchmarks are felt at the rack and terminal level, where delivery premiums and transportation costs can significantly influence the price farmers pay at the pump. For SVC patrons, this means it’s wise to plan fuel purchases ahead of peak usage windows and consider locking in volumes to stabilize costs.
Oils and Lubricants
While diesel gets most of the attention, the role of oils and lubricants cannot be overstated. Harvest puts machinery through intense operating cycles, increasing the need for frequent oil changes, filter swaps, and lubrication of moving parts. Because base oil prices are tied closely to crude, the softer oil markets may offer a slight easing in lubricant costs. However, supply chains for specialty oils and additives remain stretched, meaning lead times can be longer than expected in rural areas.
Farmers are encouraged to maintain a buffer of critical products such as hydraulic oils, transmission fluids, and greases to avoid downtime during the most critical weeks of harvest. Working with SVC to forecast lubricant needs can help prevent shortages and keep equipment running at peak performance.
DEF Supply and Pricing
Diesel Exhaust Fluid (DEF) continues to present challenges for agricultural operators across the Midwest. Tight global urea supplies and domestic distribution issues have kept the market firm, with little sign of near-term relief. In eastern South Dakota, increased activity in both farm and trucking fleets has put added strain on local DEF inventories.
With DEF essential to the operation of most newer diesel engines, shortages can quickly sideline equipment at the worst possible time. Patrons are strongly advised to order DEF ahead of need, monitor usage rates closely, and ensure proper storage conditions to prevent spoilage or freezing. The best strategy is to treat DEF as a critical input rather than a secondary purchase.
Propane Outlook
Propane remains comparatively stable, though subtle increases are beginning to emerge as the heating season approaches. South Dakota’s retail price currently averages around $1.93 per gallon, with wholesale propane trading near $0.83 per gallon—up nearly five percent from last week. On a national level, propane prices have crept higher in September, reflecting stronger export demand and seasonal draws on inventories.
For SVC patrons, this matters in two ways: first, anyone planning to use propane for grain drying should secure product now rather than wait until later in October; second, forward planning for winter heating needs will help reduce exposure to potential price spikes if cold weather drives demand sharply higher. Contracting a portion of winter usage is a reliable way to mitigate that risk, and SVC staff can help design a purchasing strategy that fits the needs of each operation.
What This Means for SVC Patrons
Energy markets are never static, and this week highlights the importance of planning, forecasting, and acting early. Diesel costs are stable but pressured by harvest demand, lubricants need to be stocked to avoid downtime, DEF remains tight and must be purchased proactively, and propane is edging higher as the winter season approaches.
Sioux Valley Coop is here to provide not just the product, but also the insights and support to help patrons navigate these markets. With localized delivery, cooperative buying power, and technical expertise rooted in agriculture, SVC ensures that members have the energy solutions they need—when they need them most.
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