#1 Diesel Fuel & Additives
By Gerry Crawford, Energy Sales
As winter temperatures begin, Scott and I wanted to give you some information about #1 diesel, and the proper use of additives.
The true measure of your diesel fuel’s cold weather performance is measured by operability, cloud point, cold filter plugging point (CFPP) and the cetane number. Proper tank maintenance & fuel filtration is critical to ensure your fuel operates at optimal levels. Cold flow improvers are designed to extend operability of the fuel. When the cold weather starts in the fall CFC adds Cold Flow Improver (CFI) to our #2 Fieldmaster and #2 Roadmaster. With the CFI #2 fuel will generally not gel until 0 degrees.
#1 Diesel with Cenex Premium Diesel Additive is used to blend down your Cenex premium diesel tanks during transition from summer to fall/winter, helping ensure additives remain at proper levels. This is ideal for blending down bulk tanks, and storage tanks.
Cold flow additives do not reduce cloud point. The only way to reduce the cloud point of diesel fuel is by adding #1 fuel, or warming the fuel up. Cloud point is when the temp of fuel becomes cloudy reducing the fuel flow. When the temperature of #2 diesel fuel (not air temp) is at or below its cloud point, it will not blend properly with #1 fuel or other additives.
If you’re going to be operating in 20 below temps consistently, blend your fuel 30% #2 diesel and 70% #1 diesel.
When using anti gel additives like Howes, and Power Service, it is important to know your proper treat rate and be sure to calculate it accurately. When you blend these additives remember more is not better. If you over treat, they can become counterproductive and not work. Always blend fuel & fuel additives when it is 40 degrees, or at least 10 degrees above its cloud point.
In closing we want to thank you for your business and wish you a blessed harvest season.
By Scott Chase, Energy Department Manager
Now that we have had our first frost of the fall season, I thought it would be good to talk about winter fuel, the best practices and tank maintenance. Fuel maintenance helps ensure your fuel supply stays clean and free of harmful contaminants in your fuel system. Removing water from the storage tank prevents it from entering your fuel system where it can lead to corrosion, filter plugging and icing.
You ask how water gets into your fuel tank. There are several ways. First by condensation of humid air and due to temperature changes, during transportation, by leakage through faulty fill pipes or vents and by careless handling. Water in the fuel can cause many problems but the big one in the winter is ice formation in your tank that creates severe fuel lines and filters to plug.
One way to avoid water in your fuel is to tilt the tank to direct water and debris away from the outlet. Filters are another piece of maintenance. You should replace these two times a year. One time in the spring and one time in the fall. Spending a 20-dollar bill is a good way to prevent you from icing up in the winter when it’s nice and cold out.
Last of all I would like to thank Trevor Ferguson for years of working at Central Farmers Coop and wish him the best in his future.
By Gerry Crawford, Energy Sales
Scott and I wanted to give you some information on the changes in energy prices over the last 60 days.
We have seen the gas prices increase over 50 cents since mid-July. In the last ten days a few refiners got caught short on gas and had to buy up as much gas as they could in the mid-west causing pricing to spike. Short lived spike, and when we turn to winter gas in mid-September more gas will be in the market, balancing out supply and demand. As we go forward a few big refineries are going on turn around (downtime for planned maintenance), which will cause some tightness in the entire mid-west market.
We have seen the diesel price increase over 80 cents since mid-July. In their last meeting OPEC announced they will continue their 1 million barrel per day production cut through December. It was surprising to the market as they were only expected to cut through September. Causing a global supply and demand imbalance, demand will outweigh supply for the remainder of the year. As we approach harvest and local demand picks up, paired with refineries being on turn around (downtime) demand will outweigh supply. Prices look to continue to rise through the end of the year. Once OPEC stops its production cuts, and refinery turnarounds are completed we should see more supply in the market, look for prices to ease around the 2nd quarter of 2024. Other things to watch for are inflation and interest rate hikes. More rate hikes should dampen energy prices. If we start ending rate hikes or reduce them look for that to support energy prices higher.
As we move into the fall prices have strengthened due to rising crude values. They are at historically low valuation to crude due to above average inventory levels. Regardless of the domestic demand this winter, exports are expected to remain strong to clear excess inventory.
Thank you for your business and have a safe harvest!
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We would like to make you aware of our delivery policies.
Our policies follow the National Fire Protection Association mandates, state codes, insurance requirements
and the CFC credit policies.
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