Natural gas prices rally on US weather conditions

Friday, November 21, 2014
Front month natural gas futures rallied towards $4.50/mmbtu yesterday as a weather conditions in the US worsened along the east coast. Prices built on firm support around Wednesday’s close as futures added 2.7% and tested levels towards a five month high as the unexpected cold snap caught many by surprise. Given the substantially colder start to winter, with some parts of the east coast experienced a year’s worth of snowfall in just three days, we could see front month gas prices extend gains as heating demand improves.

The Japanese yen extended losses against the dollar, reaching 118.98 at one point as investors retreated from the currency for the sixth straight session. The yen has faced considerable selling pressure this week after Prime Minister Shinzo Abe announced a delay to the scheduled sales tax increase and called a snap election for next month in an attempt to reaffirm support for Abenomics. After trading towards levels last seen in August 2007 the yen pared these early losses and ended the session at 118.21. Activity overnight and early this morning has since seen the yen gain some ground against the USD, pulling back towards 117.36 at one stage after comments from the Finance Minister, Taro Aso signalled that the recent depreciation in the yen was overcooked.

Three month LME nickel prices found firm support at the 50 day MA yesterday with futures ending the session at $16,355/tonne after Tuesday’s session saw intraday gains test resistance around $16,300/tonne before the breakout. Activity early this morning has seen futures rally higher as they look to target a six week high towards $16/500/tonne as futures remain on track to close 6.1% higher this week. Having posted gains for a second consecutive week we could see nickel prices start the coming week on a solid footing, especially after Indonesia reaffirmed its ban on unrefined mineral ore exports.

Front month nat gas futures rally on heating demand

NG1 Comdty Generic 1St NG Fut 2014 11 21 07 46 12

JPY pushed towards 119.00 against the dollar

JPY Curncy Japanese Yen Spot 2014 11 21 07 52 17

3-M LME nickel futures post gains on reaffirming Indonesian ban

LMNIDS03 Comdty LME NICKEL 3 2014 11 21 08 08 03

Events for today

0930

UK

Oct

PSNCR & PSNB

1600

US

Nov

KC Fed manufacturing activity

OE: 

Nov  FTSE 100 & Equity (LIFFE)  

FN: 

Dec  Crude WTI (NYMEX) 

 

Topics: USD, JPY, LME, Nickel, Natural Gas
More from: Kash Kamal