In what some sources referred to as “winter’s last hurrah,” cashprices began the week on an up-note as they garnered momentum froma futures rally and continued covering of first-of-month shortpositions. Cash prices at most trading areas around the countrygained 1-3 cents from weekend levels.

“Cash movement [Monday] was predominantly in sympathy to thescreen,” said a Gulf Coast marketer, who reported Texas andLouisiana prices up anywhere from 1-3 cents on the day. “Nymex hasbeen up and down over the past couple of days and so has cash, butthere is no clear-cut direction for this market.” However, thesource added the market overall is “slowly but surely” recognizingthat we are at the end of winter and is expecting to have about 30days of fairly stagnant demand and weather patterns.

A Midcontinent trader, who reported Chicago citygate deals ashigh as $1.80, said some of the cash strength on Monday was due tosome short-term weather. “We have had some snow and expect a lot ofprecipitation to come into parts of the Midcontinent over the nextthree days, and overnight lows aren’t picking up like we thoughtthey would,” he said. He reported temperatures in the low 30s forthe Chicago area.

“This [was] in addition to the futures rally as well asend-of-the-month short-covering that has been giving some supportto prices.” However, he said that in the longer term, mostexpectations are for prices to bottom out.

The short-covering scenario was confirmed by other sources, whosaid that the only reason they were out on the day market Mondaywas “because we were forced to.”

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