(Title edited for clarification 11/15)
I’ve watched nat gas prices diligently over the past 3 years and have been absolutely amazed by how stubbornly the price stuck at the $2.80 - $3.00 price level. Damnest thing that it never budged much above $3 over that extended period. Couldn’t seem to get out of its own way.
And than this month the price suddenly exploded. Double-digit gains yesterday. Followed by an insane 20% gain today to close at near $5.00.
The Chicago Tribune
article I’m linking points the blame to fears of cold weather. But - Come-on folks. Fears of cold weather surface every fall without gas prices spiking 50% in a few weeks. What I’m wondering is whether nat gas is perhaps used in the storing of soy beans?@Ted
recently commented: “@MFO Members: Sold beans @$8.81a bushel, last year they sold at $10.20. Unlike corn soybeans don't store well, they must be kept very dry or they will rot. Some nearby Iowa soybean farmer's are taking on the additional cost of storing them in hope of a better price if the Trump China riff blows over. I don't think that going to happen.”
That’s the only game-changer I can think of that might have driven the price of gas up so rapidly. I’m not invested in gas. My PRAFX probably holds a bit. The fund stood up pretty well today, loosing only a penny. We heat with LP gas (liquified petroleum) as natural gas service isn’t available in our area. LP tends to track more closely to crude prices. But I’m afraid many may be looking at near double the cost of home heating this winter than what they’ve become accustomed to.
on today’s gas price burp : https://www.chicagotribune.com/business/ct-biz-natural-gas-supply-fears-20181114-story.html
Article on soy bean storage : https://www.uaex.edu/farm-ranch/crops-commercial-horticulture/Grain_drying_and_storage/soybean_drying_and_storage.aspx