Last week, your Editor advised you book 100% of your summer diesel needs and at least 50% of your expected harvest needs. EIA reports national distillate stocks are leveling-off after a few weeks of aggressive builds.
Energy markets expert Phil Flynn answers the question, "where did the excess supply come from, and is there potential for a supply squeeze?" Flynn believes there is significant risk that a rebound in travel and gasoline demand could have refiners leaning heavily on gasoline production, setting up the potential for diesel supplies to tighten. Look to profarmer.com for more details later this week as we are likely to add additional harvest diesel coverage to last week's advice.
Click the audio below to hear an excerpt of Flynn's thoughts: