Natural gas prices
Natural gas prices are key to some North American producers such as CF Industries (CF), PotashCorp (POT), Terra Nitrogen (TNH), and Agrium (AGU). Last week, average natural gas prices fell week-over-week. Natural gas prices are impacted by the weather. When it’s too warm, the demand goes up due to households cranking up their cooling systems. According to the EIA (U.S. Energy Information Administration), the demand for natural gas rose from residential and industrial users because temperatures were higher than seasonal norms.
Weekly price movements
Last week, natural gas prices at Henry Hub fell by an average of 3.1% week-over-week to $3 per MMBtu (million British thermal units) from $3.2 MMBtu a week ago. In the above chart, natural gas prices were at the peak in December 2016.
According to the EIA, January futures for 2018 were trading at a premium at Henry Hub. Prices were at $3.45 per MMBtu with a premium of $0.43 per MMBtu— compared to current spot prices. Henry Hub is the most heavily traded natural gas location in North America (MOO)—similar to the National Balancing Point in the United Kingdom.
In the next part, we’ll discuss the weekly movement for phosphate prices.