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Cash 'Chases' Futures Down, Then Back Up

Cash 'Chases' Futures Down, Then Back Up

Cash was basically "chasing" the screen Thursday, a marketer said. Although overall numbers were down by a nickel or more at nearly all points, prices were rebounding in late activity after traders saw the Henry Hub futures contract for May overcome an early dip and head back up.

The cash market took its initial cue from Wednesday evening's Access trading, which "got beat up pretty good" in response to a low-figure AGA storage withdrawal report, a marketer said. But after starting at or near their lows, prices saw upticks for the rest of the morning, he said.

Western markets tended to hold up better than those in the East. A cold front moving through the Rockies helped support numbers there, one source said. Another trader said the California utilities were active buyers as it is unseasonably cool in the state for this time of year. "It also appears that a lot of people are net short [on physical supply] for April. We can already feel that in the market," he added.

A Gulf Coast producer said she had little Thursday trading to report because "most of our gas was put to bed for the weekend Wednesday."

Intra-Alberta started the day down about C8 cents but steadily ran up to finish about even with Wednesday's numbers in the low C$2.30s, a Calgary trader said.

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