Transparency with fuel pricing
A Cenex-branded fuel truck delivers fuel to a farm.
Knowing when it’s the right time to fill your fuel tank to get the best price can be complicated. Cooperative energy experts are dialed in on energy markets and how market dynamics impact fuel price direction, but translating that information into a purchasing strategy for a producer is complex.
Enter Market Sight, developed by CHS Refined Fuels, which helps fuel buyers make more informed local purchasing decisions. The first-of-its-kind tool enables co-op fuel suppliers to leverage and aggregate local pricing information, such as freight, margin and taxes, to the market or pricing information they receive from CHS for Cenex® branded fuel.
Cooperatives can then use forward-pricing visual tools to illustrate a range of scenarios to help their customers understand how broader market factors are impacting local prices.
“Market Sight fills a gap for our customers,” says Matt Mlynarczyk, senior account manager, CHS Refined Fuels. “In the past, a local cooperative would get visual market or pricing information from CHS, but didn’t have a nearly real-time analytical tool to relate that information to their customers to help inform fuel purchasing decisions.”
Fuel buyers can see both historical local fuel prices and forward contract prices. “This tool allows our customers to use the data to fit their needs. A cooperative energy specialist can look at fuel prices at the terminal and set the price based on specifications for their location or market,” he says. ”Working with their cooperative, farmers can use Market Sight to make data-driven, informed purchasing decisions based on their local market conditions.”