Exuberant

The cash market advanced nearly 8 cents on average Wednesday, buoyed by an exuberant screen and a strong finish by the expiring October contract. The gains were widespread with some regions posting a double-digit advance. The Great Lakes, East and California all vaulted higher. At the close of futures trading October had zoomed 9.9 cents to end at $3.023 and November added 11.0 cents to $3.215. November crude oil shed 56 cents to $91.37/bbl.

Cash quotes Wednesday latched on to strength derived from exuberant futures bulls and settled a dime higher on average. California points were strong, but the gains were noticed at nearly all trading points. Futures traders see not only covering of existing short positions but also new buying. At the close of futures trading June had added another 7.2 cents to settle at $2.465 after flirting with $2.50. July gained 7.5 cents to $2.550 and June crude oil struggled, settling at $96.81/bbl, down 20 cents.

Cash prices played catch-up with exuberant futures Friday as the market digested news of additional production and drilling cutbacks. Cash averages recorded double-digit gains at nearly every point across the country.