Futures Lower in Pre-AGA Cool-Off
Light profit-taking that began in Monday's Access trading
session, continued yesterday at the New York Mercantile Exchange.
Locals were seen as aggressive sellers, unloading positions ahead
of today's storage report. The July contract finished at $2.393,
down 4.9 cents for the day.
Several traders said cash prices, which fell throughout the
morning Tuesday, helped to fuel the futures decline. A Houston
marketer was quick to point to temperatures in the Northeast and
Ohio Valley, which are expected to moderate Wednesday as a reason
for the price weakness. "There was strong demand for same day gas
today, but buyers were starting to ratchet back their requirements
for tomorrow's gas day."
Looking ahead, he feels short-term weather outlooks will
continue to hold the key to this market's direction. "Forecasts are
calling for a return of hot weather Sunday and Monday. That could
essentially eliminate the softening prices that typically occur
ahead of a weekend," he reasoned. For the June 13-17 period the
National Weather Service is calling for above-normal temperatures
for a huge swath of the country extending from New England across
the northern third of the country and including the entire Western
U.S. Within that area of above-normal temperatures, much-above
normal temperatures are expected from eastern Montana across to
However, weather forecasts will likely take a back seat this
afternoon when fresh supply data is released by the American Gas
Association. Early market scuttlebutt is centered on a 75-85 Bcf
injection, which would fall just short of last year's 86 figure.
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