Copper market under fresh selling; Support seen at 408.8
MCX Crude Oil may trade in a range between a 4538-4844
Silver market under fresh selling; Support seen at 37978
MCX Cotton under long liquidation
MCX Cardamom under long liquidation; Support seen at 1114.4
Technically market is getting support at 187.9 and below same could see a test of 185 levels and resistance is now likely to be seen at 192.8, a move above could see prices testing 194.8.
Natural gas on MCX settled up 1.98% at 190.90 in the line of expectation following small inventory gain. Yesterday the U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. increased by 46 billion cubic feet in the week ended July 13, compared to forecasts for a build of 58 billion.
Thursday’s data compared with a gain of 51bcf in the preceding week and represented a decline of 710 billion from a year earlier and was also 535 bcf below the five-year average. Total U.S. natural gas storage stood at 2.249tcf, 24.0% lower than levels at this time a year ago and also 19.2% below the five-year average for this time of year.
Prices have been under pressure this week as traders focus on record production levels and recent weather forecasts. The NOAA predicted cooler than normal weather to cover most of the U.S. for the next one-to-two weeks.
Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning. Adding to the pressure are recent concerns over trade tensions and their possible negative impact on global growth.
If the global economy falters, energy consumption could be diminished. Meanwhile comfortable conditions linger across the Midwest and east-central US with highs only in the 70s to lower 80s the next few days. Overall, demand will ease to MODERATE the next few days then back to HIGH.
–Natural gas trading range for the day is 185-194.8.
–Natural gas prices surged, rallying from support levels, following a smaller than expected build in natural gas inventories.
–The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. increased by 46 billion cubic feet.
–The lower than expected build has flattened the trajectory of builds leaving stocks well below the average of the 5-year range.
Courtesy: Kedia Commodities