Light profit-taking that began in Monday’s Access tradingsession, continued yesterday at the New York Mercantile Exchange.Locals were seen as aggressive sellers, unloading positions aheadof 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 themorning Tuesday, helped to fuel the futures decline. A Houstonmarketer was quick to point to temperatures in the Northeast andOhio Valley, which are expected to moderate Wednesday as a reasonfor the price weakness. “There was strong demand for same day gastoday, but buyers were starting to ratchet back their requirementsfor tomorrow’s gas day.”

Looking ahead, he feels short-term weather outlooks willcontinue to hold the key to this market’s direction. “Forecasts arecalling for a return of hot weather Sunday and Monday. That couldessentially eliminate the softening prices that typically occurahead of a weekend,” he reasoned. For the June 13-17 period theNational Weather Service is calling for above-normal temperaturesfor a huge swath of the country extending from New England acrossthe northern third of the country and including the entire WesternU.S. Within that area of above-normal temperatures, much-abovenormal temperatures are expected from eastern Montana across toMaine.

However, weather forecasts will likely take a back seat thisafternoon when fresh supply data is released by the American GasAssociation. Early market scuttlebutt is centered on a 75-85 Bcfinjection, which would fall just short of last year’s 86 figure.

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