As readers know, we follow the contango/backwardation situation closely as it significantly affects UNG prices. Contango causes losses on UNG, by doing nothing and without requiring natural gas prices to drop. Is is a very bad condition for UNG as it needs to all its contracts every month.
This is the status as of 2:15PM today:
While this is not good news, actually, bad news for UNG holders, prices have been very volatile and this situation changes day after day. However, it has been a while since it was this consistently bad. There is contango in every singe month of 2011. From June to March for example it is +2.62%.
Anyone wishing to buy UNG, stay tuned and do your due diligence.