* Estimates for light storage build prop up prices
* Production cuts, coal switching help tighten the market
* Milder weather this week limits upside
* Coming Up: Reuters EIA natgas storage poll Wednesday
NEW YORK, May 9 (Reuters) - U.S. natural gas futures edged
higher early Wednesday for a third straight session, with
expectations for a supportive weekly inventory report on
Thursday and signs of a tighter market offsetting the mild
weather this week that slowed demand.
Traders said the supply-demand balance for gas seemed to be
tightening, with record production finally showing signs of
slowing and demand picking up as utilities push to switch from
coal to cheaper gas to generate power.
The result has been that the weekly inventory build has
fallen short in three of the last four weeks and could do so
again on Thursday even as moderate spring temperatures slowed
overall weather demand
