Above-normal temperatures, both outside traders’ windows and intheir weather forecasts, continued to weigh on the futures marketthroughout trading Monday. The February contract gapped lower atthe open as moderate selling prompted the market down 6.4 cents toits $1.714 close. Estimated volume was heavy, with more than 93,000contracts changing hands.

Some sources noted that cash prices, which were weaker despitetheir relative strength in the face of futures losses last week,added to the bull-traders’ misery yesterday. “This is a purefundamental decay,” said a Houston trader. “The National WeatherService came into agreement [Monday] with what some privateforecasts were saying last week-it’s going to warm up for thebeginning of Feb,” he continued. And although he admits this marketcould fall even lower before Wednesday’s expiry, he does not ruleout the chance for a reversal if the forecasts get revised. “Thereis some uncertainty past the 6- to 10-day outlook. Some privateforecasts are looking for an Arctic blast to drift into the Midwestand Northeast by the end of next week. Depending on when and if themarket decides to react to those predictions, we could get a littlebounce,” he added.

But a New Jersey analyst took a completely different approach.”Of the eight February contracts so far, seven have settled at alower price than their January counterpart.” January 1999 went offthe board at $1.765.

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