Taking a cue from the July contract, which tumbled in anexpiration-day sell-off, August began its tenure as prompt month byslipping lower yesterday morning as traders continued to look pasta bullish storage situation to focus on bearish short-term demandoutlooks. But just like other moves lower in recent weeks,yesterday’s retracement was short-lived and by 11:15 a.m. (EDT)buyers had promoted the near-month back into positive territory onthe day.

The price action quieted down yesterday afternoon, leaving theAugust contract to drift modestly higher to finish at $4.423, up2.6 cents.

Several traders polled by NGI were unimpressed by the market’squick foray below $4.30 Thursday. “I am looking at a 5-minute tickchart and you can barely even see the move lower,” a Chicago tradersaid. “We didn’t spend more than 15 minutes below $4.30. It seemslike each time this market tries to correct, the buyers get alittle more anxious.”

It’s always hard to get to support in a bull market, adds PeterHattersley of New York-based Rafferty and Associates. “We hadsupport at $4.15, but the market didn’t quite get there today. Youstill have to trade the range. We have seen a good band between$4.15 and $4.60. Until you get a break, you have to buy the marketas it approaches $4.15 and sell it on moves up to $4.60,” he said.

Despite the false breakout above $4.60 earlier this week,Hattersley views a move above that level as a potential buyingopportunity that could pay dividends on the order of 40 cents. “Iwould be a buyer on a settle above $4.60-62,” he reasoned.

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