Daily GPI / NGI All News Access

August Upstages July on Expiration Day

August Upstages July on Expiration Day

The stage was set for expiration day pyrotechnics Monday at the New York Mercantile Exchange. Bulls were confident they could add to the string of five higher highs and higher lows notched on the daily charts last week. On the other hand, bears believed the confluence of mild temperatures and follow-through on the heels of Fridays price erosion would set the tone early yesterday. They were both wrong. Except for a late and almost inconsequential blip higher, the July contract was a model of stability yesterday, where buying and selling matched up nearly perfectly. July closed out its tenure as spot month up a meager 0.4 cents to settle at $2.262. The August contract finished up 3.2 at $2.324.

Cash prices for both June and July moved higher as well yesterday as traders scrambled to find gas for electric generation. Looking ahead, many traders feel that weather will continue to play a major role in the direction of the market. "There are some marketers that are rolling the dice this month and betting on mild weather in July. And if the weather continues like it has been, that will be a smart move. However, if July stays hot, look out," a Houston marketer said.

For at least the first week of July, it appears temperatures will stay on the warm side. In its latest six- to 10-day forecast the National Weather Service (NWS) calls for a huge section of the country to experience above and much-above normal temperatures. Only Florida and the Northwest are expected to see below normal temps, the NWS said.

Despite the above-normal temperatures, New Mexico-based Kase and Company looks for prices to steadily continue lower, possibly reaching the $2.025 level.

©Copyright 1999 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.

ISSN © 2577-9877 | ISSN © 1532-1231
Comments powered by Disqus