"The only way you can nail down volatility is by having some sort of cash market," he said.

At the same time, the cash market hit its high of the session, 105 24/32.

He said that many producers had reported selling gas in the cash market for between $2.35 and $2.40.

"They're only in the cash market; we have a lot more to offer."

Losses were limited by slow producer selling and a higher cash market.

"Today, more than anything, I think the cash markets did a little better than most people had thought," he said.

Prices in the cash market for Treasury securities quickly followed.

The action suggested the owners had found buyers for that cotton on the cash market.

Farmers sold corn on cash markets for the same reason, he said.

That's why there is a big premium to the cash market.