November natural gas prices traded higher this morning, as they extended last week's gains. The latest 6 to 10 day weather maps show normal to above normal temperatures throughout Western half of the US, with an expanding area of below average temperatures in the Southeast. Some reports have indicated that heating demand for natural gas was likely to increase with the falling temperatures as far south as Atlanta. It is also possible that the natural gas market has garnered support from tropical storm activity in the Gulf of Mexico, with a large low-pressure system gaining better organization off the Yucatan Peninsula. The Commitments of Traders Futures and Options report as of October 11th showed non-commercial traders were net short 165,149 contracts, an increase of 3,192. Non-commercial and nonreportable traders combined held a net short position of 139,228 contracts, an increase of 3,170.
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