May natural gas prices retreated from their recent highs set yesterday, settling down around half a percent on the day today.
The entire front of the strip came under a bit of selling pressure, generally settling down slightly more than a cent.
Meanwhile, Henry Hub cash prices remained quite firm on the day.
With cash firm and weather forecasts similar (as we outlined to clients in our Morning Update), we saw the May/June K/M contract spread as similarly flat on the day.
Yet with weather not changing much and cash firm, it was another slow trading day overall with just a 5-cent prompt trading range.
Volume on the prompt month May contract was below average today as well.
The limited weather changes we discussed could best be seen in the 8-14 Day CPC forecast changes this afternoon, with their forecast equally consistent.
Tomorrow traders will attempt to price in Thursday’s EIA print while weighing any overnight weather trends and looking at other daily fundamental indicators that we track for clients.