As a Daily GPI source had predicted Monday, that day’s futuresrun-up provided enough momentum to keep most cash market points onthe rise Tuesday. But don’t bet the farm on cash firmness tocontinue today, not after the screen’s headlong plunge Tuesday,several traders said. Despite heat waves remaining in the West andSouth, there is not enough in the way of fundamentals to counterthe screen’s negative influence, they said.
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Futures Plunge Expected to Reverse Cash Climb
Cash prices continued going up at most points Wednesday, oftenrepeating Tuesday’s gains of between 3 and 9 cents. Butshell-shocked traders were more interested in discussing what onecalled the “precipitous” drop in May futures and its implicationsfor both April and May cash numbers. “I’d bet a lot of people gotcaught with their pants down” by the screen’s plunge, a marketersaid. Several sources said the Nymex drop caused daily cash dealsdone late to fall.
April 23, 1998