Natural Gas Futures
Natural gas futures in the November contract settled last Friday in New York at 2.80 while currently trading at 2.43, down about 37 points for the week, hitting a 2 month low.
I am not involved as the volatility is extremely high. That situation isn't going to change as we enter the winter months as seasonably speaking, you can have tremendous price swings daily. I will be looking at a counter-trend trade soon. I think the contract low, which was hit on June 25th at 2.13, will keep a close eye on this market as I think a bottoming situation is starting to occur.
Gas prices are trading under their 20 and 100-day moving average as the trend is mixed to lower in my opinion as prices topped out right around the 3.00 level just several weeks ago. Fundamentally speaking, industrial natural gas demand remains tepid as BNEF data shows gas demand from power generators was estimated at just under 30 bcf for last Monday, which is the lowest for any September 21st since 2015.
TREND: LOWER - MIXED
CHART STRUCTURE: POOR
VOLATILITY: HIGH
Orange Juice Futures
Orange juice futures in the November contract is currently trading at 111.85, ending the week on a sour note after settling last Friday in New York at 105.75, up over 600 points for the week bottoming out around the 105 level. Continue reading "Extreme Volatility Hits Natural Gas Futures"