Zinc market under fresh selling; Support seen at 184.7
MCX Copper may trade in a range between 426.2-454
Fresh Buying seen in MCX Crude Oil; Support seen at 5068
Short covering seen in MCX Cotton
MCX Cardamom likely to move in a range of 996-1044
Technically Natural Gas market is under fresh selling as market has witnessed gain in open interest by 8.8% to settled at 3612 while prices down -2.2 rupees.
Now Natural Gas is getting support at 194.1 and below same could see a test of 192.1 levels and resistance is now likely to be seen at 198.7, a move above could see prices testing 201.3.
Natural Gas on MCX settled down -1.11% at 196.20 in the line of expectation while overall Natural gas prices consolidated mid-week, ahead of Thursday’s inventory report. The weather is forecast to be warmer than normal over the next 8-14 days which could buoy cooling demand.
The EIA reported that both production and consumption grew significantly year over year through the first half of 2018. Natural gas supply and consumption have grown significantly from the first half of 2017 through the first half of 2018.
According to data from the EIA, total natural gas consumption in the Lower 48 states averaged 87.4 billion cubic feet per day during the first half of 2018, which is 11% greater than during the first half of 2017. The total supply of natural gas averaged 84.8 Bcf/d during the first half of 2018, a 7.8 Bcf/d year-on-year change.
Overall, consumption increased 0.7 Bcf/d more than supply. This market tightening was reflected in the large storage withdrawals this year and the current low levels of natural gas in storage relative to the five-year average.F undamentally, it’s hot now, but this has been priced into the market for about 10 – 14 days.
Currently, traders are pricing in a cooling system that is expected to hit mid-month. This news, combined with huge gains in production should be enough to keep the pressure on prices.
Trading Ideas:
–Natural Gas trading range for the day is 192.1-201.3.
–Natural gas fell on weather forecasts that did not show much more heat for the next couple of weeks than last week, while production remained near record highs.
–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.
–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.
Courtesy: Kedia Commodities
Source: Commodityonline.com
