Nat gas headed for one of the worst days in over a year,Longs taken out to wood shed a bit of forced liquidation ongoing. LNG exports trending higher,so we cant blame that for drop in prices weekly storage number beat by two standard deviations so plenty of supply available.Shoulder month upon us as October volume and open interest continue to drop and as November becomes the front month winter weather becomes focus.its still summer for pEte’s sake so no more weather concerns for a spell. nat Gas headd for one of the worst days in 1.5 years.
oil is on the opposite side as it continues its impressive run higher today,A bit of bullish comments from opec and maybe just maybe some unwind of a Long Gas/Short oil spread ?? CL +2.4% Brent +2.7% CLV option expiration today maybe adding a bit to volatility movement in CL.
Plenty of Cross currents today in lumber ;Fires,better weather west coast,a possible peak in spot prices,Steady growth in Single family Home starts. lets look at Lumber curve showing a bit of the backwrdation coming out of it.The curve doesn’t contain all the information one needs to trade but it at lest can give you a picture of supply situation.
The matrix not making much sense today dollar is /was stagnant but precious metal taken out to wood shed a bit,Nasdaq tested big support level and bounced for now it looks like a retest is in the cards. I m leaning Option expiration tomorrow as reason for collapse in prices.
Soybeans continue to impress Export demand strong soy +16% since August USDA report(@karenbraun)