Hedge funds have been adding to existing long positions in the natural gas market over the past two weeks.
The fund combined long position in June was just above 395,000 contracts (futures only) as the market set the summer high.
During the subsequent sell off from the June high which erased nearly 25% of market value over the following 6 weeks, hedge funds were liquidating.
The speculative long position by the funds bottomed out 200,837 contracts two weeks ago but has since climbed to 215.342 contracts according to last Friday's Commitment of Trader's report.
The hedge funds will likely be buyers of natural gas over upcoming weeks attempting to play the typical seasonal rally higher during the winter months.
The current long position is neutral-bullish for natural gas as the funds have plenty of room to add to long positions as needed.
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