MCX Crude Palm Oil under fresh buying; Resistance seen at 576
MCX Crude Oil expected to trade between 3747-4003 levels
MCX Silver likely to trade between 40022-40632 levels
NCDEX Ref. Soya Oil under short covering
MCX Gold may trade in a range between 32743-33067
Technically Natural Gas market is getting support at 202.9 and below same could see a test of 200.3 level, And resistance is now likely to be seen at 208.7, a move above could see prices testing 211.9.
Natural Gas on MCX settled down -0.68% at 205.60 moved lower on Wednesday ahead of Thursday inventory reported from the Department of Energy. Market’s expectations are for natural gas inventories to decline by 176 Bcf.
The weather is expected to be colder than normal for the next 8-14 days across the mid-west but that will come after a warm front that follows the current colder than normal weather. Next week there is the possibility that inventories decline by more than 200 Bcf following the record negative temperatures in the mid-west.
One Minnesota town had temperatures below -40 degrees below F. The Fed left rates unchanged and had dovish commentary which should buoy commodity prices. According to NatGasWeather for January 30 to February 4, “A dangerous polar blast continues to impact the Midwest with frigid temperatures of -40F to -20sF, with -20s to 0s across the Ohio Valley and Northeast, and 20s and 30s into the South and Southeast.
There will be scattered snows across the Great Lakes and Northeast while a wintry mix exits the South/Southeast. The polar blast will exit Friday with strong warming to follow this weekend into next week across the South & East. The West will be mild across coastal states with increasing showers, while colder into the Mountain West.
Overall, national demand will be very high Wednesday to Friday, easing to moderate to low this week-end. The expiration of the February futures contract may have also contributed to the short-covering rally on Tuesday.
–Natural gas trading range for the day is 200.3-211.9.
–Natural Gas us heading for more than a four-month low ahead of Thursday inventory reported from the Department of Energy.
–Natural gas production in major US shale regions could rise 21% yoy in February.
–National demand will be very high Wednesday to Friday, easing to moderate to low this week-end.
Courtesy: Kedia Commodities