Milder

Prices for the last four days of May fell across the board Friday. As a source had predicted, the market weakened under the pressure of milder weather trends, Thursday’s expiration-day drop of 19.2 cents in June futures, a second straight bearish storage report and the greater loss of industrial load associated with a holiday weekend.

Although this week’s overall weather picture is considerably milder than last week’s, the cash market was able to mix many flat to slightly higher points into general price declines Tuesday that ran as high as a little more than a dime.

While this winter has been milder than normal in many areas of the country, WSI Corp. said the Northeast could experience a chill this spring. In the company’s just released seasonal forecast for March through May, the forecaster expects the period to average cooler-than-normal temperatures generally north of a boundary that extends from Spokane, WA to Dallas, TX to Washington, DC.

While this winter has been milder than normal in many areas of the country, WSI Corp. said the Northeast could experience a chill this Spring. In the company’s just released seasonal forecast for March through May, the forecaster expects the period to average cooler-than-normal temperatures generally north of a boundary that extends from Spokane, WA to Dallas, TX to Washington, DC.

Thursday’s bullish storage report and the screen spike that it inspired obviously had more influence on cash market thinking than some sources had suspected. The prior-day futures strength trumped weakening weather fundamentals and the usual weekend drop in industrial load to send prices higher at nearly all points Friday.

Entering a period of milder weather and spurred by the previous day’s screen loss of nearly 22 cents, prices kept falling across the board Wednesday. However, the decline pace slowed considerably. Wednesday’s drops ranged as high as about 30 cents in the Northeast, but were in single digits at a slight majority of points.

It was growing clear that despite some recent moderating weather trends, winter may have loosened its grasp a bit over the northern half of the U.S. and Canada but certainly hasn’t let go yet. Thus a moderate rally in cash prices continued Wednesday.

Spurred by Friday’s screen drop of more than a quarter and generally milder weather trends, prices dropped across the board Monday. The Northeast, despite facing a new winter storm late Monday that would continue through Tuesday, again led the market’s downhill trek with declines of around a dollar or greater.

Following Thursday’s price surge that seemed to many to have no visible means of support, Friday’s numbers were in retreat nearly across the board. A smidgen of flatness in the Rockies belied overall softness that saw declines ranging from about a nickel to nearly half a dollar. Most were in the range of 10-30 cents.