Moderately

Most of the cash market was moderately softer in post-Christmas trading Wednesday as forecasts of sub-freezing lows had become rather scarce outside the Rockies and some locations in the upper Northeast. Activity was predictably light as some traders remained out of the office on holiday vacations and Boxing Day was being observed in Canada.

Prices rose moderately in most of the cash market Monday despite generally mild weather forecasts, but for the third week in a row quotes plunged to sub-dollar levels in the Rockies. A series of pre-dawn explosions on several gas pipelines in Mexico helped stoke some bullish sentiment as U.S. gas may be called upon to help replace Mexican supply shortfalls, although the U.S. export capability is limited (see related story).

Rather improbably, since cooling demand remains moderately subpar for early July outside the western U.S. and a holiday flow date was involved, prices rose in most of the cash market Tuesday. A few points that were flat to down about 15 cents extended a recent trend of mixed price movement nearly every day.

Softness was moderately predominant in a mixed pricing environment Monday. Forecasts of pleasant to cool conditions Tuesday in the Midwest, Northeast and eastern end of the South resulted in drops at a majority of eastern points, although most of the Midcontinent recorded substantive gains.

January-ending prices were down moderately at most points Tuesday despite below-normal temperatures continuing in several market areas. The overall softness was attributed to a 25.8-cent expiration-day dive by February futures Monday and growing use of storage supplanting new purchases of spot gas.

Most of the cash market was softer Friday, but it had a few flat to moderately higher points in the mix. A prior-day screen increase and some instances of rising cooling load were outweighed by a significant weekend cooldown in the Northeast and the drop in industrial load that typically accompanies a weekend. Also, excess supply issues were accumulating in the West, where many of the largest losses were recorded.

The holiday weekend effect of higher demand loss than usual trumped a minuscule prior-day screen gain and moderately rising power generation load as temperatures began heating up in northern market areas. The result: prices continued to fall at nearly all points Friday.

Northeast citygates continued to slide moderately Thursday as a slow warming trend in the region proceeded, but all other points ranged from flat to 32 cents higher. Declines about midway between a dime and 15 cents at Tennessee Zone 6 and Transco Zone 6-New York City topped the losses.

A few instances of flat to moderately higher pricing showed up in the West, but an overwhelming majority of the cash market continued to probe lower levels Tuesday as traders returned from Christmas holiday. Widespread mild weather and the extension of natural gas futures plunges into their third day Tuesday weighed heavily on cash quotes.