Natural Gas Commitment of Trader's Report - Continued Liquidation

The hedge funds are having another rough year in the natural gas market that is very similar to 2013.  After accumulating a 395,000+ contract long position at the June price high, hedge funds have had to liquidate as the market has fallen lower.

In 2013, funds built up a fairly large long position during the month of October expecting an early start to winter.  The market instead fell to new price lows for the year as cold weather failed to materialize.  And as prices fell, the funds completely liquidated their long position right as the market bottomed during the first week of November.

Last Friday's Commitment of Trader's report showed funds long 162,279 contracts, down 1,898 from the previous week.

With natural gas prices falling to new 2014 prices lows, continued fund selling could add further pressure on an already weak market.