Most cash trading points managed to squeeze out minor upticksWednesday despite a modestly softer screen. Activity was subdued asweather fundamentals remained as relatively mild for summer as theywere for much of last winter.

Noting the mild weather that has blanketed most of the South forthe last week or so, a Texas trader said hotter temperatures aredue this weekend, but that potential boost likely will be negatedby the usual weekend drop in gas load. However, he added, “thatmeans look out for Monday” when more heat will combine with thestart of a new business week.

A Southern electric utility reported Wednesday was the first daythis week it had bought any new gas “because it just hasn’t beenhot enough for normal power loads this time of year.”

A marketer considered it “pretty likely” that the majorCalifornia distributors will issue high-inventory OFOs again thisweekend, especially since currently hot western weather is expectedto moderate by then. He said he wouldn’t be surprised to see theregion’s recent pattern of big Friday price drops followed by bigMonday increases continue through the rest of the summer. The bigproblem, he said, “is you usually don’t recover as much priceterritory on Monday as you lose on Friday, plus there’s the hassleof scheduling around OFOs and imbalances.”

Despite the current market doldrums, several sources had bullishnear-term outlooks. The 59 Bcf storage injection report by AGAturned the year-on-year surplus into a deficit, said one trader.She also sees good reason to expect more heat in the major easternand southern market areas next week to boost prices.

The Calgary Stampede continues to occupy much of the attentionof many players in Canadian markets. That prompted one trader toquip, “There’s a lot of tombstones around around here.” Translated,that meant it’s a dead market. However, he went on, it’s wrong ofsome people to complain that Stampede causes illiquidity.”Actually, it (market) is very liquid. There’s liquid lunches,liquid dinners, etc.,” he said, referring to the Stampede-relatedsocializing of traders.

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