Natural gas and grains prices give way

The plunge in natural gas prices breathed some life into what was otherwise a relatively quiet week in commodity markets. Prices have fallen heavily in most major gas markets as stocks remain high for this time of the year.

In the US, the House of Representatives voted this week to reverse President Biden’s decision to pause approval of new LNG exports. Regardless of whether the bill passes the Democrat-controlled Senate, LNG exports are set to rise over the next two years as already approved exports come online. This, as well as an easing in domestic gas production, should push US prices higher by the end of the year. In the EU and Asia, prices should remain under pressure as new supply enters the market.