Apparently cash traders weren’t quite as impressed Tuesday with the forecasts of significantly chillier temperatures in several areas later in the week as they had been a day earlier, because prices fell at most points outside the Northeast. The traders were finding some sections already set to start rebounding from the most recent blasts of cold, and new forecasts Tuesday tended to be a bit less severe than those that began the week.
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Although a couple of sources were not impressed, a cold front taking overnight lows into the 40s in the Midwest and scheduled to move into the Northeast over the next couple of days appeared to be creating a modicum of heating load that played some role in a strong price rebound at nearly all points Monday. The screen’s increase of nearly a dime on the previous Friday and the return of industrial load from its weekend slump also supported the cash rally.
Despite freezing conditions still dominating the weather picture across the northern half of the U.S. and Canada, the cash market was softer at nearly all points Monday. A few flat points, mostly in the Rockies, were exceptions as Northeast citygate plunges of more than 60 cents led overall price declines that were mostly between a nickel and 20 cents.
Impressed with their handiwork following Tuesday’s positivemarket momentum, Nymex bulls were on the offensive again yesterdayas they loaded up on long positions ahead of yesterday’s storagereport. After opening at Tuesday’s high of $2.77, the Aprilcontract rumbled higher yesterday morning only to tumble back intothe $2.70s in the afternoon. The prompt month closed up 4.3 centsat $2.794.