MCX Copper may trade between 418.1-437.1 levels
MCX Crude Oil may trade in a range between 4636-4864
Silver market under fresh selling; Support seen at 38069
MCX Cotton under fresh buying; Support seen at 23954
Gold market under fresh selling; Support seen at 29747
Technically Natural Gas market is under fresh selling as market has witnessed gain in open interest by 4.13% to settled at 3507 while prices down 0.4 rupees.
Now MCX Natural Gas is getting support at 190.9 and below same could see a test of 188.9 levels and resistance is now likely to be seen at 194.8, a move above could see prices testing 196.7.
Natural Gas on MCX settled down 0.21% at 192.80 dropped on fresh selling failed to breach 195 key resistance levels while inventory levels remain near the lower end of the 5-year range according to the Department of Energy.
Weather systems with showers and thunderstorms will track across the Midwest and east-central US this week with comfortable highs of 70s to lower 80s, including into portions of the southern US for lighter demand.
Hot upper high pressure continues to dominate most of the West and South with highs of 90s to 110°F, hottest from California to Texas. Hot high pressure will expand across the eastern half of the US with 90s gaining ground for increasing national demand late this week through early next week.
Overall, national demand will be MODERATE increasing to HIGH. The current weather conditions show that weather is moving west to east with a standard zonal flow. It also appears that a troughing pattern is developing where warm weather is pushing up and covering most of the mid-west.
The weather is expected to be warmer than normal over the next 8-14 and 6-10 day forecast according to the NOAA. Warmer than normal weather will increase power demand especially in Southern California where natural gas is used to generate electricity.
Natural gas prices are 12% below the 5-year average, which is 3.14, which makes them relatively cheap when comparing them to the 5-year average inventory level.
–Natural Gas trading range for the day is 188.9-196.7.
–Natural Gas prices traded in range on forecasts for less hot weather and lower demand over the next two weeks than previously expected.
–Natural gas prices are 12% below the 5-year average, which is 3.14, which makes them relatively cheap when comparing them to the 5-year average inventory level.
–According to the EIA natural gas inventories are 705 Bcf less than last year at this time and 557 Bcf below the five-year average of 2,830 Bcf.
Courtesy: Kedia Commodities