MCX Nickel likely to move in a range of 909.3-965.3
MCX Aluminium may trade between 145-151.2 levels
MCX Mentha Oil likely to trade in a range of 1647.9-1736.9
Crude Oil market under fresh buying; Support seen at 5179
Silver market under short covering; Support seen at 37499
Technically Natural Gas is getting support at 216.3 and below same could see a test of 211.6 levels and resistance is now likely to be seen at 223.5, a move above could see prices testing 226.
Natural Gas on MCX settled up 2.7% at 221 finished sharply higher helped by strong physical prices, signs of early heating demand and below-average stockpiles.
A short squeeze in Appalachia due to seasonal maintenance also helped prices surge. Helping to limit gains was a report that showed overnight Global Forecast data (GFS) “wasn’t quite as cold” for a series of weather systems expected to arrive into the northern United States late this month into the first few days of October, according to NatGasWeather.com.
In other news, U.S. natural gas in storage increased by 86 Bcf to 2.722 Tcf for the week-ended September 14, U.S. EIA data showed Thursday. The build was slightly more than the estimate calling for an 83-Bcf addition.
The injection was just below the 87-Bcf build reported during the corresponding week in 2017 but more than the five-year average addition of 76 Bcf, according to EIA data. It was only the second time in the last month the injection was more than average.
As a result, stocks were 672, or 20%, less than the year-ago level or 3.394 Tcf and 586 Bcf, or 18%, less than the five-year average of 3.308 Tcf. At 2.722 Tcf, total working gas is below the five-year historical range and sits 196 Bcf lower than the five-year minimum.
Looking ahead to Thursday’s storage report, traders are looking for a 63.4 Bcf injection for the week-ending September 21, which would come in below the five-year average 81 Bcf build and close to the 64 Bcf build recorded a year ago.
Trading Ideas:
–Natural Gas trading range for the day is 211.6-226.
–Natural gas climbed and above the psychologically important 220 level, amid worries about unusually low inventories in storage.
–The current expectation for this deficit to the five-year average is to increase over the next couple of weeks.
–Utilities likely added a smaller-than-normal 71 billion cubic feet (bcf) of gas into storage during the week ending Sept. 21.
Courtesy: Kedia Commodities
Source: Commodityonline.com
