April natural gas prices rallied to their best levels since February 16th on Friday, supported by a round of short covering and colder 6 to 10 day weather maps. Some traders indicated that expectations of cold Canadian air is expected to fall into the mid-US areas during the March 5th to 9th time frame, and that could become a factor that sparks near term demand. However, there remains concern of how much an impact the cold weather will have on already large US storage levels, especially as the winter season winds down. The Commitments of Traders Futures and Options report as of February 22nd showed non-commercial traders were net short 221,980 contracts, an increase of 11,211. Non-commercial and nonreportable traders combined held a net short position of 186,079 contracts, an increase of 15,325.
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