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Futures Lower in Pre-AGA Cool-Off

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 Maine.

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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