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U.S. natural gas futures ended up 47% on Thursday, a record daily percentage gain, on total volume of about 7,000 contracts in the expiring February contract. The next-month contract rose a more typical 6.1% on much heavier volume.
The record gain came from short-covering in a thin expiring contract rather than a fundamental shift, though colder forecasts and a larger storage draw supported sentiment. Energy cost volatility feeds into feed processing and grain drying costs.
reuters.comScott DiSavinoJan 27, 2022Not 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.
The expiring February contract's record 47% gain on thin volume (~7,000 contracts) was a technical squeeze that directly produced the 1-day move ending 2022-01-27.
