Mark Twain once said that while everybody talks about theweather, nobody does anything about it. And although that may haveheld true on a 19th century Mississippi Riverboat, it was not thecase in the natural trading pit Tuesday as traders bid up pricesthroughout the session on the news two new tropical systems hadformed in the Gulf of Mexico and Caribbean Sea.

The October contract finished up 6.8 cents at $5.363, and indoing so set a new prompt month high at $5.385. Led by the Decembercontract, the winter strip was equally impressive, probing 8.5cents higher to close at $5.268.

The most conspicuous feature of yesterday’s trading was the factthat futures prices received a boost at 10 minutes before each hourthroughout the session, leading Ed Kennedy of Miami-based PioneerFutures to conclude traders were glued to the Weather Channel. “Wesaw additional buying enter the market at the bottom of each hour.It was clear that people were waiting for the revised forecast andreacting accordingly.”

As of press time last night, the National Hurricane Center wassending Hurricane Hunter reconnaissance aircraft to evaluate anarea of unsettled weather in the Southwest Gulf as well as theremnants of tropical depression 12 in the Western Caribbean Sea.Both systems have the potential to strengthen, the NHC said.

According to Kennedy, the existence of this double-barrel threathas got sellers frozen in the headlights. However, he admits thatthe buying seen in the market today was cautious —probablybecause traders are weary of achieving fresh length at the market’salready lofty price level and also ahead of today’s storage report.

Looking ahead, traders expect to see an injection of somewherebetween 60-70 Bcf when the AGA releases its updated report at 2:00p.m. (EDT). Anything less would be bullish, while anything greaterwould be bearish, sources agree.

Ironically, last week at this time the conditions were similar.The market had just learned of the potential formation of a new storm,and expectations were centered on a 50-60 Bcf injection. Prices movedhigher throughout the session last Wednesday (see Daily GPI, Sept. 14) before plummeting when the AGAannounced that a whopping 72 Bcf had been stuffed into theground. That bearish sentiment did not last too long, however, andprices finished on a strong note amid continued storm concerns.

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