Natural Gas Pops Into April Contract Expiry

Natural gas prices popped into expiry today, with the April contract rallying just less than 3% before going off the board. 

(Click on image to enlarge)

natural gas commodity weather

This fit perfectly with our expectations. Our Morning Text Message Alert to trader level subscribers outlined that we saw the April contract as likely to expire from $2.68-$2.7 given recent weather trends, with our Morning Update then saying any colder afternoon trends would easily push it above $2.65. The CME had it settle right at $2.691. 

natural gas commodity weather

Today's move also justified our continued slightly bullish sentiment yesterday afternoon. 

natural gas commodity weather

The April contract clearly led today, with the rest of the strip not rising nearly as much. 

natural gas commodity weather

This came as our Morning GWDD forecast actually did not add much demand from yesterday, though we noted increased confidence that should support prices. 

natural gas commodity weather

Still, with a bullish expiry we saw J/K tick significantly higher as it went off the board. 

natural gas commodity weather

 

Disclaimer: To begin receiving both our technical and fundamental analysis of the natural gas market on a daily basis, and view our various models breaking down weather by natural gas demand ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.