As many of you know already– commodity markets have been on a tear for 2021, many since last July. Copper, gold (though not of late), corn, soybeans the list goes on. Many pundits have referred to as a super-cycle in the commodity trade. Yet with all this bullishness, gas has not been able to hold onto the gains made late last year and have constantly retraced. Grant you prices are higher this year but it does not seem as strong as most of the other commodities. This website has discussed several times last fall and winter the “bias change” that was occurring in the gas market and with all the discussion about the super-cycle, it is time to update the charts.
Weekly Continuations with Highs and Lows
Notice in the charts, the multi-year low late last June (interesting timing with the commencement of the other commodity rallies), the market has set a series of higher highs and higher lows. The one exception was this February when prices could not exceed the previous high from Nov by a few pennies. Other than that– the gas market has maintained a significant premium to the June ’20 lows. This activity may represent the development of a more bullish environment for gas in 2021.
