On fence for pellets this year (rant)

[nailed_nailer]

Rant on.

I am on the fence about heating with pellets this year.

Locally I can get for about $275 / ton. That is a gross average of the prices from about 10 places around me.

Oil is selling for $2.30-$2.60 / gallon delivered.
http://www.newenglandoil.com/massachusetts/zone7.asp?x=0

The oil does a much better job of equally heating the entire house. And right now it is cheaper to burn oil than pellets.
I do miss the stove running in the living room. You just don't get that warm and cozy feeling from a hot air register

I was hoping the pellet prices would go down as there seems to be a bit of a glut on the market. All the retailers I know stocked up big for this fall.
They seem to be holding way more product than usual. I know that will change when we get the first cold snap. But they seem to have about 2X more
stock than the they did this time in the last few years.

I bought 4 bags of Bayou pellets yesterday just to try them out. I don't have high expectations. Have heard bad things about them.

I guess I am waiting for a pellet deal to fall from the sky. Even if I heat with oil for the first 1/2 of the year...I'd like to have pellets on hand for
the 2nd 1/2 of the season when oil will magically jump up due to the unusual migratory bird travel path of the eastern large breasted mattress thrasher.
Or whatever lame excuse they pick to jack up the fuel prices

I think If I can get a good pellet here in eastern Mass for under $250.00 / ton I will feel much better.

Rant off.

---Nailer---

 

[kobalt]

I was able to buy mine for an average of $.68 cents a bag cheaper then last year or I might have been burning oil as well.

 

[jtakeman]

Seems there are quit a few people on the fence, And it looks to be somewhat dropping the pellet prices or at least holding them steady. I don't have that option. I have to burn pellets or turn on the Electric heat(not gonna happen).

August the big box stores were close to $300 a ton near me. Now there under $250.00. The pellet houses have held there prices they had this spring. I have not seen an increase. Usually around Oct 1st, They tend to raise there prices. But with the bigboxes selling so cheap and there overall sales are being lower. The prices are unchanged. I would have though they might drop them, But I believe there somewhat commited to these prices. Or they just figure they can sell at a higher cost and maybe not sell as much. But still make some profit. I would asume there prices are locked in for the season by the mill's. If the mill price is steady, Then there price would stay the same.

I am still hoping for the pellet house price drop, But we might not see it. I want some super hot pellets that I can't get from the big box stores. But I don't want to pay $275/ton or higher. I will sit an wait and just maybe. We will get some price drop!

I have a few friends that have the oil option. There tanks are full and they have purchase some pellets. If the oil spikes? They have the pellet option. If its stays low? Save the pellets or conserve them. Keep the tanks full!

Option's are always good. Use what is cheapest for you for primary heat! When you need the cozy feeling, Fill the hopper and get cozy. Just conserve them. If we don't buy them they should adjust there prices!

just my 2
jay

 

[pelletdude]

As a pellet dealer I want everyone to buy pellets. As a pellet burner at my home and at the shop I burn pellets for 2 reasons (1) I really like the warmth (2) I like the fact that I own my fuel now and I really don't care if oil goes up or down. Not to mention that I am not supporting a giant corp. or country that as John McCain said "people that don't like us very much"

I hear from my customers every day that they burn pellets because they really like them. They could care less about oil, propane or NG. They have committed to pellets and will burn them over other sources.

I do have customers buying 1 ton at a time instead of the customary 3 or 4. However, they are buying the best pellets I sell - Okanagan, Dragon Mountain and Turman over the lesser priced brands. They want the most heat and the least amount of ash for there hard earned $.

 

[tinkabranc]

No expert here, but I doubt you will see prices drop much more around here
than where they are now.

It is that time of year when the pellet demand is starting to rise. When the weather
gets cooler more people are out picking up their winter supply.

Early buy prices this year were a joke. Most prices were still alot higher than what
I paid at "regular" prices within the last few years.

Hoping this coming Spring we will see some REAL early buy prices again.

 

[Dr_Drum]

. . . Early buy prices this year were a joke. Most prices were still alot higher than what
I paid at "regular" prices within the last few years.

I remember those early buy posts/polls from back in April when people were posting email price quotes or conversations with dealers that $290-$300/ton was a good price. The building market was going to start buying up all the raw materials to make plywood and stuff like that. They said NO WAY prices were going to drop and that dealers weren't making any money at those prices. I held out and saved a few bucks, lucky guess (this time), but everyone needs to decide on their own how important burning pellets is to them, for whatever their personal reasons (stick it to the rag heads, just save money, like the heat, go green . .etc.). I paid $250/ton but only bought 25 bags to add to my "oil spike" stash. That was basically the same price I paid last year and hated buying them with oil prices so low, but my oil tank is full and can't hold another drop. Oil prices are predicted to stay low this year. That can easily change overnight, who really knows? It's like any other market, they'll take from you whatever you are willing to give them.
Mike -

 

[Fsappo]

As an anti oil pro biomass retailer I have to sympathize with the pellet users out there this year. It's a tough choice. For folks that didnt buy their fuel early at a savings, buying now may seem like a risk. I suppose having 1 or 2 tons in stock just in case would make sense. You never know when things can go haywire again...and if there is a uptick in fuel oil that gets some press, you know what will happen to pellet fuel supplies and prices over night.

 

[mark d fellows]

Buy oil then.

 

[drizler]

I agree, buy oil. Hell you can always leave it set at 60F and then turn on the pellet burner when you are in the living area. Another thing is to buy that oil wherever you can get it cheaper. Those boys be hungry since last season and they are making all sorts of 1st time and internet discount deals. Pick the cheapest. Around here they are giving 25 cents tax credit for 20% biodiesel and somewhat less for 5%. Personally I am going to burn corn this season for the most part which knocks my cost down to somewhere south of 190/ton if I buy it in the next month during harvest season.