With a weaker screen during the morning and not a lot of solidweather load emerging from the weekend, most of the East was flatto down a few cents Monday. Western points continued a now-familiarpattern bracketing weekends: having suffered the biggest drops onFriday, they saw the biggest rebounds on Monday.

However, the July futures contract surprised many cash tradersby doing an about-face and going from more than a dime lower at onepoint to more than a dime higher at closing. “It looked like theywere gearing up for another assault at that $4.60 [high set inDecember 1996] level,” a marketer remarked. He and others wereconfident that the notable futures reversal would have swing pricesrising in all markets today.

Monday’s biggest downturns of more than a nickel wereconcentrated at citygates in the cool Midwest. On the other hand,outside of the West’s rebounds, the only sizeable upticks in theEast occurred at Northeast citygates, where it was warm enough tomake a difference.

Gulf Coast numbers were trending downward, staying “pretty weak”relative to the screen, said a producer in the region. He was at aloss to explain the afternoon run-up in futures but said it wasalmost certain to bring higher cash prices today. Borrowing fromhis days in Econ 101 class, a marketer offered this assessment:”There were more [futures] buyers than sellers.”

The opening of bidweek was slow as traders understandably lookedahead to Wednesday afternoon. “It’s going to be quite interestingthen as people digest the implications of both the last storagereport before July begins and the Nymex settlement coming at themalmost simultaneously,” one source noted.

Predictably traders reported July basis weakening as the screendirection turned positive Monday afternoon. Their physical basisquotes used during the first day of bidweek included: Chicago plus6-7; MichCon and Consumers Power both plus 7.25; Panhandle Easternminus 18.75; NGPL-Midcontinent minus 20.5; Tennessee 500 Leg andTrunkline-East Louisiana both minus 7; and Henry Hub minus 1.

A marketer reported a July fixed-price deal at Malin for $4.29,but said that was likely to be near the low end of the Malin rangesince it was done before the screen began strengthening. “I’mseeing Malin now being bid at $4.49 this afternoon,” she said.

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