Actually we've been heading this way for a while but now you can start to hear a moan coming from the longs.*
Expectations for big storage build Thursday pressureLast I saw on the front month futures was $2.20, down another 1.17%.
* Milder late-week forecasts, record supplies also weigh
* Hub discount relative to futures weakens slightly
* Coming up: EIA oil inventory data, Reuters storage poll
By Joe Silha
NEW YORK, March 27 (Reuters) - U.S. spot natural gas prices traded lower on Tuesday for the fourth time in five sessions, pressured by expectations for an above average storage build on Thursday and milder Northeast and Midwest forecasts that should slow demand.
Gas for Wednesday delivery at Henry Hub NG-W-HH, a key supply point in Louisiana, fell 7 cents to $2.09 per million British thermal units, with late-morning deals weakening to 13 cents under NYMEX from a 10-cent discount on Monday.
The daily Hub average is below the March monthly index of $2.42 and well below the year-ago price of $4.35 and the $3.92 mean on about the same day in 2010....MORE
Although we aren't there yet the next step is producers throwing gas onto the cash market.
*"They were at once enveloped in a dense cloud of smoke and dust. Arms, heads, blankets, guns and knapsacks were thrown and tossed in to the clear air. ... A moan went up from the field, distinctly to be heard amid the storm of battle."
On the effects of the Yankee fire upon Pickett's Charge, July 3, 1863