Naturalgas on MCX settled down -3.31% at 210.5 as forecasts showed warm weather through the end of October, stoking concern that a mild winter will limit heating demand for a second year. Above-normal temperatures will prevail across most of the lower 48 states through Nov. 2, according to MDA Weather Services. The high in Chicago on Oct. 27 may be 64 degrees Fahrenheit, 6 more than normal, data showed. The gas rally to a 22-month high may be running out of steam on speculation that consumption of the fuel will be muted over the next few months, allowing a stockpile glut to expand. Prices had surged earlier in October as record demand from power plants and a slowdown in gas production from shale formations helped trim a supply surplus. The combination of those high prices and warmer-then-normal autumn weather has the market primed for a pullback, analysts said. At its peak, futures had doubled in seven months, climbing from all- time Nymex, inflation-adjusted lows. But the last leg of the rally had been in part tied to expectation that the winter could produce strong weather-related demand just as the summer had. Weather has a big influence on natural-gas prices because half of U. S. homes use it for winter heat and it supplies a third of all power demand, which surges when summer heat keeps air conditioners running. Autumn is a time of year when weather is often too temperate to boost heating or cooling demand, forcing unused gas into storage. Technically market is under fresh selling as market has witnessed gain in open interest by 16.3% to settled at 6573, now Naturalgas is getting support at 207.8 and below same could see a test of 205.2 level, And resistance is now likely to be seen at 215.3, a move above could see prices testing 220.2.

Trading Ideas:

Naturalgas trading range for the day is 205.2-220.2.

Natural prices dropped as forecasts showed warm weather through the end of October.

This year’s gas stockpiles are already high and could possibly set a new record going into the winter.

Today natural gas storage: Exp: 72B Prev: 79B. Actual is at 8.00PM