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July natural gas was set to open 5 cents higher at $2.22 as the first heat wave of the season arrived. Traders saw large speculative funds reconsidering their short positions, and analysts expected higher California power demand as triple-digit temperatures were forecast.
Heat-driven power demand and possible short covering can lift natural gas prices, which feeds into fertilizer and energy costs for feed producers. The move was described as a short-term rally rather than a durable fundamental shift.
naturalgasintel.comRichard NemecMay 31, 2016After 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.
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.
