Softness

Price movement was minuscule either up or down from unchanged Wednesday, but the market continued to show a tendency for modest softness as moderating weather signaled the approaching end of an especially severe winter.

Mixed price movement returned to the market Friday following losses at virtually all points a day earlier, but mostly moderate softness stayed highly dominant.

Mixed price movement returned to the market Friday following losses at virtually all points a day earlier, but mostly moderate softness stayed highly dominant.

Despite two preceding days of futures softness and some tardiness in the current blast of cold weather reaching the Northeast and parts of the South, the cash market found enough heating load in the late-week forecasts to raise prices at virtually all points Wednesday.

Following major spikes everywhere to open the trading week, the market was mixed Tuesday but dominated by mostly mild softness. A 34.4-cent giveback by December futures Monday proved more influential to cash traders than the prospects of increasing cold weather later this week.

In a move that baffled some traders, prices rebounded by large amounts across the board Tuesday from the previous day’s overall softness. Since weather-based demand remained relatively meager in most areas, Monday’s prompt-month futures spike of 33.7 cents was about the only solid support that could be found for the cash price strength Tuesday.

A few flat to about a dime higher locations in the Rockies (and ANR ML7 in the Midwest) avoided mostly moderate softness in the rest of the market Wednesday. Some pullback in heat levels across the southern United States and Rockies, along with continuing mildness in the northern market areas, combined with the previous day’s 10.9-cent drop by August futures to depress most cash locations.

Softness prevailed again Wednesday in most of the cash market despite lows around the freezing level or less returning in the Thursday forecasts for most locations in the Midwest and Northeast. However, there was a much closer balance between rising and falling points, indicating a bit more price strength than before.

Prices continued to fall at nearly all points Friday, with previously spiking Northeast citygates taking part in the general softness. The previous Wednesday’s bearish storage report and the accompanying 23.7-cent drop by February futures that day were the primary cash market depressants, abetted by moderating weather trends in the South, Midcontinent and parts of the Midwest along with the weekend’s typical decline of industrial load.