Natural gas futures were down sharply in early trading Friday as overnight forecasts cooled the outlook for mid-June temperatures. The July Nymex contract was down 7.2 cents to $2.280/MMBtu at around 8:40 a.m. ET.

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Weather models trended cooler overnight, particularly for the June 15-17 period, according to NatGasWeather. The American model dropped a “hefty” 11 cooling degree days (CDD) from the outlook, with the European model shedding a “modest” 4 CDD, the firm said.

“Texas and the South are still expected to be quite hot next week with highs of mid-90s to 100s, although not as hot elsewhere,” NatGasWeather said. Models “still show the hot ridge expanding out of Texas and the South June 18-24 for strong national demand as highs of 90s gain in coverage across the...