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US natural gas futures dropped to a 10-month low as mild January forecasts reduced expectations for cold weather. The March-April spread fell 52% to a record low of 10 cents per MMBtu, signaling the market had abandoned hopes for a cold winter.
A collapse in the winter spread signals that traders expect weak winter heating demand, reinforcing downward pressure on natural gas prices. Lower gas costs can ease energy and fertilizer expenses across the feed supply chain.
boereport.comReutersJan 3, 2023After 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.
