July natural gas prices took on a slightly higher track during the initial morning hours. Some traders indicated that some of the support might have come from weather forecasts calling for above normal temperatures along the northeast out to June 13th. This would be seen as a force boosting air-conditioning demand for natural gas. Data from Baker Hughes last week showed their gas-directed rig count falling to a new 12.5 year low last week. The Commitments of Traders Futures and Options report as of May 29th showed non-commercial traders were net short 102,056 contracts, a decrease of 11,451. Non-commercial and nonreportable traders combined held a net short position of 77,107 contracts, for a decrease of 10,554 during the report week.
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