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Natural gas futures fell 12.8 cents, or 4.3 percent, to settle at $2.880 per million British thermal units on Thursday, their biggest one-day drop in three weeks, as forecasts called for less cold weather. Regional prices nonetheless soared under pressure from a cold snap tied to the so-called bomb cyclone on the U.S. East Coast.
Cold weather lifts near-term heating demand for natural gas, which raises the cost of energy used in feed manufacturing and grain drying, while a forecast easing pulls prices back. Feed buyers should watch energy input costs alongside grain prices during such weather swings.
reuters.comScott DiSavinoJan 5, 2018After 104 past bearish weather events, Natural Gas moved a median -7.8% over 5 sessions (22% higher; middle half -14.8% to -0.8%), and -3.3% 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.
Futures settled down 4.3% at $2.880, the biggest one-day drop in three weeks, as forecasts called for less cold, so weaker weather-demand expectations drove the decline.
