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Natural gas prices and related ETFs rose on Wednesday as traders reacted to weather forecasts pointing to a colder-than-expected winter. The UNG fund gained 17.9 percent and leveraged products moved much more.
Futures traded as high as 20 percent higher intraday on a 15-year-low supply position.
Leveraged ETF moves reflect speculative positioning that can add to short-term price swings in natural gas. Underlying cold-weather demand and low supply still support higher energy input costs for feed producers.
finance.yahoo.comETF TrendsNov 14, 2018After 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.
Dated 2018-11-14, it ties the rally to colder winter forecasts and a record-low supply position, with futures up to 20% intraday and UNG up about 18%.
