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Traders Buy Cheap Natural Gas, US Wheat Quality Deteriorates

June 8, 2015 at 21:45 by Vladimir Vyun

Futures for natural gas demonstrated huge jump during the Monday’s trading session following the recent decline. It looks like low prices have attracted speculators who seek cheap valuation. Fundamentally, there are few reasons to buy the commodity as forecast of normal temperatures in the United States suggest limited demand for the gas used in heating and air conditioning. July futures jumped as much as 4.56 percent to $2.71 per million British thermal units as of 21:37 GMT on NYMEX today.

Futures for wheat rallied as well due to concerns about the quality of the US crop. The US Department of Agriculture reported today that 30 percent of winter wheat was in good or excellent condition, down from 44 percent in the prior week. The quality of the spring crop remained the same at 71 percent rated as good or excellent. July futures for wheat climbed 2.13 percent to $5.28 per bushel on CBoT today.

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