MCX Aluminium may trade between 141.4-148.6 levels
MCX Mentha Oil under short covering; Support seen at 1292.9
MCX Nickel likely to trade in range between 963.5-1022.7
MCX Zinc expected to trade between 189.4-199.2 levels
MCX Copper may trade between 439-456.6 levels
Technically Natural Gas market is under short covering as market has witnessed drop in open interest by 12.12% to settled at 3320 while prices up 1.1 rupees.
Now MCX Natural Gas is getting support at 196.8 and below same could see a test of 195.1 levels and resistance is now likely to be seen at 200, a move above could see prices testing 201.5.
Natural Gas on MCX settled up 0.56% at 198.40 traded in the range tracking Nymex Natural gas prices which consolidated, moving slightly higher before the July 4, break.
Warmer than normal weather is expected to cover most of the United States for the next 8-14 days increasing cooling demand which could see electricity blackouts. While production remains solid, there is a need for substantial increases ahead of the drawing season in October.
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According to NatGas Weather, “production is just too strong for the markets to ignore, aided by reports of weekend production at or exceeding all-time highs, thereby weighing more heavily on prices than hefty deficits and hotter than normal temperatures.”
Genscape, Inc. data showed that lower 48 production appears to have cracked the 80 Bcf/d mark. Following pipeline reported revisions to nominations data, its production team showed volumes hit around 80.05 Bcf/d on June 28 and June 29.
Bespoke Weather Services said it attributed Monday’s sell-off to production reaching “record levels” over the week-end and to a slight cooling in medium-term forecasts. Meanwhile the EIA reported revisions to working gas levels in the South Central region increased working gas levels by 4 Bcf for the week ending July 15, 2018.
As a result of these revisions, the net change for the previous report week changed from 91 Bcf to 95 Bcf. The weekly net change for the week ending June 22 was not affected by the revision.
Trading Ideas:
–Natural Gas trading range for the day is 195.1-201.5.
–Natural gas prices gained as warmer than normal weather is expected to cover most of the United States for the next 8-14 days increasing cooling demand.
–Production in the lower 48 U.S. states has averaged a record-high 79.9 billion cubic feet per day (bcfd) for the past 30 days.
–Meteorologists forecast temperatures, which have been higher than normal since the start of June, will remain at above-normal levels through at least mid-July.
Courtesy: Kedia Commodities
Source: Commodityonline.com
