Softness

With the shoulder season now in full swing and storm systems in the tropics remaining largely unorganized, the softness in natural gas futures last week spilled over into Monday’s action as the November contract recorded a low of $3.686 before closing out the regular session at $3.727, down 7 cents from Friday’s finish.

Prior-day screen dive, slight retreats in southern heat have only minor impact.

Most of the cash market varied little from flat Friday, but modest softness in the West tended to be barely more plentiful than small gains at eastern points. Moderately warmer temperatures were returning in the South, Northeast and Midwest, and cooling trends in the Rockies and desert Southwest were resulting in little cooling load remaining at western trading points.

Several flat to about a nickel higher points in various regions managed to escape the overall moderate softness that enveloped the market Tuesday. The previous day’s half-penny advance by May futures did nothing to influence cash numbers, so the physical market finally had to acknowledge that advances in the past few days were made with essentially no support from weather fundamentals.

Several flat to about a nickel higher points in various regions managed to escape the overall moderate softness that enveloped the market Tuesday. The previous day’s half-penny advance by May futures did nothing to influence cash numbers, so the physical market finally had to acknowledge that advances in the past few days were made with essentially no support from weather fundamentals.

Cash prices were pushed lower at most locations Friday by a combination of prior-day futures softness, cool but generally moderate weather and the tendency of industrial load to take the weekend off.

Cash prices were pushed lower at most locations Friday by a combination of prior-day futures softness, cool but generally moderate weather and the tendency of industrial load to take the weekend off.

Much like the day before, a few flat to higher points were able to avoid the softness that continued to dominate the cash market Tuesday. An expiration-day drop of 3 cents by April futures was just another bearish factor in which gas is finding substantive heating demand scarce.

Much like the day before, a few flat to higher points were able to avoid the softness that continued to dominate the cash market Tuesday. An expiration-day drop of 3 cents by April futures was just another bearish factor in which gas is finding substantive heating demand scarce.