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Natural gas prices jumped nearly 20 percent on Monday after forecasts showed a short-term return of hot weather. Increased LNG feedgas flows over the weekend added to the bullish sentiment.
Traders hoped the heat would help draw down a stockpile still considered oversupplied.
Weather-driven gas rallies raise nitrogen fertilizer and ethanol input costs, which can support corn and DDGS prices over time. The move is expected to be short-lived unless a major heat wave materializes.
oilprice.comJulianne GeigerAug 3, 2020After 221 past bullish weather events, Natural Gas moved a median +3.3% over 5 sessions (61% higher; middle half -5.2% to +14.0%), and -0.3% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
