Propane Demand Surges in Midwest

source: Reuters

A waterlogged fall delayed harvest is producing wet crops which has caused a surge in propane demand among crop farmers, even as livestock producers are buying to keep their barns warm and rural homeowners try to heat their homes - all of which is straining aging infrastructure used to deliver that fuel, reportsReuters.

Propane suppliers in Wisconsin, Minnesota and Iowa are experiencing increased demand from out-of-state fuel sellers, trade groups said.

Propane prices have surged by about 20% in October as sellers scramble to find enough fuel across the Midwest to satisfy customers.

Much of the U.S. corn belt relies on a fragmented supply network of pipelines, trains and trucks to keep pace with propane demand. That infrastructure this year has not been able to keep pace with the unexpected spike in demand.