Explanation:
The false statement is B.
Natural gas is typically discussed as a commodity with seasonal demand and regional pricing differences because transportation and storage are constrained. Its forward curve can show sharp and predictable contango/backwardation swings, and it is not governed by a single global price.
So the statement that natural gas has relatively constant year-round demand but seasonal production is the one that does not fit the usual McDonald description.
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Question 188.5: Each of the following is TRUE about the natural gas forward (futures) curve EXCEPT:
A
Natural gas forward curves ought to vary by region; i.e., ought to defy a single global forward curve
B
Like corn, natural gas has relatively constant year-round demand but seasonal production
C
Any natural gas forward curve ought to contain swings, even “large and predictable swings,” of both contango and backwardation segments
D
Even with swings, the underlying natural gas forward curve can be upward-sloping or inverted to incorporate the market’s expectation of current spot prices vis-a-vis current spot price