Thursday, November 25, 2010

Great news for UNG and HNU ETFs: natural gas now in backwardation

Please see the current situation in natural gas contracts as of 11AM this morning:


Not only contango is gone, but prices are now in backwardation until May 2011, with little difference till August 2011. This is great news for UNG and HNU holders, as ow backwardation may work in their favor. Prices of natural gas may still fall, but the ETF will benefit on contract rollovers, as opposed to lose money as before.

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