After a strong opening at $2.28 failed to entice much in the wayof additional buying, natural gas futures gave back most of thegains achieved during Wednesday’s Access trading session anddrifted lower for much of the yesterday’s session. Although itsmomentum was decidedly to the downside Thursday, the Februarycontract did manage to post a higher high at $2.29 and escape witha modest, 0.8-cent advance to finish at $2.252. Estimated volumewas thin with only 45,585 contracts changing hands.

Despite snow falling over much of the Northeast yesterday andsome of the coldest temperatures of the season expected last night,the futures market took on a bearish mood yesterday. AHouston-based risk manager was quick to point to traders’ inabilityto fill in the chart gap up to $2.305 yesterday as a reason for themarket’s failure. “All the stars were aligned [Thursday] forFebruary to fill in the gap. Strength in Wednesday’s Access wasconfirmed by early over-the-counter deals, but in the end, bullsjust didn’t have enough giddy-up.”

Looking ahead, he feels that in order for the February contractto move higher today, the gains will have to mount early. “Mostpeople will be trading cash for four days [today], and I expect tosee cash prices come off in typical weekend fashion. It will bedifficult for futures to plod higher when cash is off,” hereasoned. The futures market will be closed Monday in observance ofMartin Luther King, Jr. Day.

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