After gapping higher at the open yesterday and reaching as highas $1.915/MMBtu during the day, the April contract was able tomanage only a small 0.6-cent gain for the day, telling someobservers the contract has lost its vigor after the rapid 22.5-centclimb last week. April opened at $1.905, up significantly fromFriday’s settle of $1.853, but it lost steam at $1.92 during themorning and fell back to about $1.86. During afternoon trading, thecontract bounced back up to $1.90 before falling back down to fillthe gap and close the day at $1.859.
Higher
Articles from Higher
March Higher as Bulls and Bears Mark Territory
A tight range and relatively quiet trading returned to thenatural gas futures pit on Monday following last Friday’s failedrally that briefly touched overhead resistance. And althoughyesterday’s highs did not approach the $1.875 notched last week,some traders felt the move was constructive for prices. Theprompt-March contract was limited to a 1.8-cent gain to finish at$1.818 for the day.
Screen Given Most Credit for Modest Cash Gains
Cash numbers ranged from flat to just over a nickel higher at afew points Thursday, and sources were nearly unanimous inattributing the upticks mostly to the example set by the Henry Hubfutures contract. In turn, they thought the screen strength derivedfrom the fairly hefty 203 Bcf figure in AGA’s Wednesday afternoonreport on storage withdrawals last week.
Even Without Weather Support, Cash Slightly Higher
Despite a dearth of fundamental support, the cash market sawmostly minor gains Wednesday. The firmness came as a surprise tomany who couldn’t understand where the demand was coming from. Aminuscule gain in Henry Hub futures didn’t give cash much impetusat all, one trader said.
Warm Weather Casts Shadow Over Futures Market
The futures market gave the impression it was heading higheryesterday when February opened at Tuesday’s high and quickly tradedto $1.85. But the selling dried up, leaving the market vulnerableto light selling for the rest of the session. The February contractclosed down 5.1 cents for the day at $1.77.
Futures Shrug Off Freezing Temperatures
All the ingredients were present for natural gas futures tocontinue higher yesterday: momentum from last week’s advances,single digit temperatures in much of the West and Midwest and achart gap that was “just waiting to be filled.” But all of thosefactors, plus the official start of winter, were no match for theoverabundance of stored gas. After a brief attempt at last week’shighs the market came under strong selling pressure on Monday. Theprompt January contract slipped 12.7 cents to settle at $1.947.
Day Market Edged Higher, Aimed Down in Late Trading
Cash prices continued their upward direction Wednesday, but at aslightly slower pace than the prior two days. A fading winterblast in the Northern Plains, combined with forecasts of moderatingtemperatures and a softening Nymex screen, eased the punch of thestrong cash market in late trading, sources said.
Futures Edge Higher in Quiet Session
Following Monday’s dramatic price rout, Tuesday’s tradingexhibited a more sedate demeanor, leaving the December contract totrade within a narrow 6.5-cent range. And while the late-afternoonsell-off had bulls running for cover Monday, consolidation of thoselosses gave them a ray of hope before the close yesterday. Thatrebound was enough to lift the prompt month 3.6-cents to $2.478.
Futures Drop in Afternoon Selling Frenzy
After trading nearly a dime higher for most of the sessionMonday, the futures market collapsed during the last 20 minutes oftrading amid a flurry of selling that was set in motion bysell-stops and wide cash-futures basis. By the time the dust hadsettled, December’s $2.442 close was 11.1 cents off Friday’s leveland nearly 20 cents from session highs. Estimated volume was arobust 76,481.
Futures Spike Amid Hurricane Fear
The futures market spiked higher Monday in response to thethreat to natural gas supplies in the Gulf of Mexico posed byHurricane Mitch. There was an early buying surge as non-commericaltraders struggled to close out short positions ahead of the rally.However, once the market started its momentum, buying came from allsegments of the market. The November contract settled up 13.4 centsto $2.298.