For the third trading session in a row, natural gas futuresopened higher yesterday, but unlike Monday when prices driftedlower, the movement was positive Tuesday as traders positionedthemselves ahead of today’s storage report and the continuation ofunseasonably cold temperatures.

The January contract received the largest boost, spiraling 57.5cents higher to close at $9.102. Nearly as impressive was the12-month strip, which advanced 15.9 to $6.073. Estimated volume(28,249) was extremely light considering the size of the pricemove.

Traders were quick to point to wintry weather yesterday toexplain the market’s bullish euphoria. While the Midwest wasdigging out from yet another record-setting December snow, much ofthe East was getting its first visit of the season from Jack Frost.Snow fell yesterday from Georgia to Maine, closing schools, causingtraffic snarls, and ultimately buoying natural gas futures prices,traders said.

Looking ahead, traders are anxious for fresh storage news thatwill be released this afternoon. Estimates range in the 145-170 Bcfrange, neatly in line with the 158 Bcf withdrawal announced lastweek. Comparatively, last year at this time the market pulled 116Bcf from the ground and the 5-year average is 112 Bcf, according tothe American Gas Association.

For Nymex local consultant Ira Hochman, Tuesday’s price-positiveactivity more than outweighed the negative day structure seen onMonday. Because of that, he remains cautiously bullish and looksfor the market to test resistance in the $9.43-48 area. “If themarket develops above [$9.43-48]… Sayounara, we’re going to$11.00.”

On the downside, it would take a break of the $7.90-92 area toturn him bearish. As of last night, that looked to have littlechance of happening, as prices were dramatically higher in Accesstrading. As of 6:00 p.m. (ET) the January contract was 28.8 centshigher at $9.39.

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