After two brief rally efforts failed to produce higher prices,the futures market again came under selling pressure as moreprominent bearish fundamentals more than offset below-normal marketarea temperatures. And in a rare occurrence, the 4.1-cent loss seenin the prompt March contract was outpaced by more substantiallosses in the April, May, June and July contracts.

Sources noted that continued short selling, both by commercialplayers and speculators, was seen as a reason for the market’sweakness. But a Houston trader remained unimpressed, even as theMarch contract etched a new all-time low yesterday. “I have talkedto a number of market participants [Monday], and all but one thinkthe market will not move below the $1.65-67 level. It comes down toa simple question. Is there a greater upside or downside potentialstarting from $1.65?”

He may be right, but if the market is able to trend higher, itwill have to do so in the face of continued above-normaltemperatures. The National Weather Service provided no relief forbulls in its revised 6- to 10-day forecast released last night.Except for bands of normal temperatures in the Southeast and alongthe West Coast, the NWS is looking for above and much above normaltemperatures for the beginning of March.

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