News
Natural gas prices “anchored” at low levels in near-term
Relatively soft demand has depressed the natural gas market.
CoBank energy economist Teri Viswanath says prices around $2.30 per One million British Thermal Units (MMBtu) are a far cry from where they were a year ago.
“We had a very light heating season, we now have ample supply (and) high inventories (so) it’s pressuring prices.”
Natural gas is used to produce synthetic fertilizers including nitrogen and she tells Brownfield a price correction is unlikely in the near term.
“The good news for consumers is that the prices right now are going to remain anchored at these low levels. Now the factors that could change that and push up price are going to be increased use for cooling demand.”
Viswanath says one of the lightest drawdowns in natural gas inventories in ten years occurred coming out of winter and production is rising.
Hello Dan, natural gas is a primary feedstock in fertilizer production and high natural gas prices last year were a major contributor to record high fertilizer prices for farmers. The fact that natural gas prices should remain lower in the near future is a sign that fertilizer prices should also remain lower in the near term. I believe that is important to farmers.
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