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Natural Gas Prices

H

High Plains

Well-known member
Joined
Jul 17, 2006
Messages
825
Location
Nebraska
It is time to choose a Natural Gas supplier in Nebraska for residential folks. The deadline is tomorrow. For residential use the current price per therm to lock in is right at $0.68 / therm (western NE) for the next year. Exactly half of last year's lock rate!! :shock:

Would a person be wise to lock in at this rate, or just ride the market? I'm thinking that a bird in the hand is worth two in the bush. You'd actually have to talk pretty hard to get me to believe that the rate will be cheaper next winter when the heating usage is heaviest.

What are some of you farmers doing for natural gas for your pivots, etc.? Do you have the opportunity to lock in a rate? Do you choose to do so?

HP
 
NG is going to stay cheap over the next several months. In fact, they will go lower. I don't see prices firming until late winter at earliest.

Best case is if you can wait about three months then lock in.
 
Well, nortexsook, I sure agree with that waiting three months would be ideal. I'd predict the price to go down by then and then tick back up in early winter. But as far as I can tell, the decision must be made now. Maybe I'll call to make sure, but I'm fairly certain that the decision must be made now.

HP
 
Yes, the decision must be made by tomorrow. Either, lock at $0.68/therm or go with the NYMEX plus $0.15 with a cap at $1.01.

There are other options with other companies, but they are more confusing.

HP
 
Can anyone explain to me why nitrogen fertilizer is still so expensive with gas prices this low? Besides the obvious of course: gouging. But I wonder if there is another explanation?
 
Silver said:
Can anyone explain to me why nitrogen fertilizer is still so expensive with gas prices this low? Besides the obvious of course: gouging. But I wonder if there is another explanation?
Click to expand...

Thats an easy one. Alot of the suppliers bought high priced nitrogen last August. Most of them are now sellling at a big loss. Just be glad if you weren't one of those that bought your nitrogen last August.
 
If I buy grassers in the spring and the bottom falls out in the fall, I take my lumps. :? Thats life.
It has allways irritated me that equipment on the lot will rise in price as our dollar drops, but seldom changes (or changes much more slowly) as our dollar rises. Same sort of thinking here I think.
 

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