Wednesday, November 10, 2010

Naturas gas keeps rocketing higher, but so does contango

Please consider the chart of the December 2010 futures contracts (24h):


UNG also reacts accordingly:


However, the January 2011 prices have also risne, thus has contango, so we know what will happen to UNG.

January 2011 contracts:


The contango Jan 2011 to Dec 2010 is now 3.8% (note: 4.3% as of 3PM)

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