Propane retailers are still in the throes of getting vital propane supplies to their customers this winter. It is now the homestretch for winter, but forecasts for a cold February mean there is much work still to be done. It is difficult to think past the immediate tasks that must be done. Still, it won’t be long until attention will turn to securing supply and price protection for next winter.

As discussed in last week's Trader’s Corner, propane markets answered an important question this winter that has relieved a lot of the worry about propane prices. Going into this winter, there was great concern that a cold winter and strong export demand would cause a blowout in propane prices at the trading hubs of Mont Belvieu and Conway. However, that blowout never occurred because U.S. propane importers backed off U.S. propane as prices moved higher.

With this knowledge, we think the propane markets will move toward next winter with less anxiety about propane supply and prices. However, that doesn’t mean it isn’t wise to look for opportunity to secure next winter's supplies and lock in prices at good values.