Natural Gas Plunge

[Hamloc]

I was just reading on Farm Futures this morning that Yara is starting all of it’s European Ammonia plants due to the fact that the price of Ammonia on world markets has risen high enough to make it profitable again. Out of interest I took a look at the natural gas price in the U.K. this morning. It is at 320 pence a British therm, up from 228 pence just 9 days ago. That is a 40% increase and equivalent to $240 for a barrel of oil.

This morning U.K. natural gas price is trading at 455 pence per therm, almost doubled now since early December. From what I read this morning in countries in the EU like Germany electricity is hitting record prices as well.

It looks to me like Putin is playing with the European leaders like puppets on a string. Their poor choices in energy infrastructure have put him in the drivers seat.

[shtferbrains]

14 times current USA price for natural gas.

Wonder if those proposed LNG plants on northern BC coast look to have better economics now?

Diesel plants are a low cost producer. Set up your own gen set.

Have to wonder what we will see play out in the food vs fuel situation.

Reset for sure. Not very well planned.

[farming101]

This sell-off may be an opportunity for hedgers to purchase Feb/Mar nat gas calls. Feb at-the-money $3.65 calls trading for 0.39 today or $3,900 U.S. per contract for massive ten million BTU gas contract.

That was a good call Errol
Feb 3.65 calls up 59.2% less fees as of yesterday. Should be up some more today.
14 days to expiry .8457 delta

[farming101]

That was a good call Errol
Feb 3.65 calls up 59.2% less fees as of yesterday. Should be up some more today.
14 days to expiry .8457 delta

Now up 141.5%

[helmsdale]

Now up 141.5%

Yea, there's going to be a few shorts holding their asses after today...

[farming101]

3.65 Feb calls settled up 210.5% since Dec 6