February natural gas opened the Monday evening sharply lower and plunged to a new contract low overnight. Heat-related demand prospects for natural gas remain weak, evidenced by forecasts from the National Weather Service that call for natural gas demand in the coming week to run nearly 13.0% below normal. This follows last week's demand reading of 18.1% below normal. The latest 6 to 10 day weather maps continue to weigh on demand as well, with above normal temperatures forecasted through most of the eastern half of the country. The Commitments of Traders Futures and Options report as of January 10th showed non-commercial traders were net short 158,589 contracts, a decrease of 2,551. Non-commercial and nonreportable traders combined held a net short position of 133,176 contracts, a decrease of 3,687 on the week.
Join the Discussion