MCX Crude Oil likely to trade between 5210-5336 levels
MCX Silver expected to trade in a range between 37290-38866
MCX Gold expected to trade in a range between 30682-30916
MCX Crude Palm Oil under short covering; Support seen at 592.2
Ref. Soya Oil market under short covering
Technically Natural Gas market is under fresh buying as market has witnessed gain in open interest by 59.18% to settled at 6326 while prices up 1.6 rupees.
Now MCX Natural gas is getting support at 220.8 and below same could see a test of 218.6 levels and resistance is now likely to be seen at 224.3, a move above could see prices testing 225.6.
Natural Gas on MCX settled up 0.72% at 223.10 prices continue to move higher after breaking out on Monday. Colder than normal weather is forecast to cover most of the mid-west increasing heating demand ahead of the inventory withdrawal season.
Inventories remain below the 5-year average range. There are a few tropical disturbances, one in the Caribbean that has a 60% change of become a tropical depression and one off the coast of Cape Hateras North Carolina which has a 50% chance of becoming a cyclone.
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Meanwhile high pressure will dominate the southern US with highs of 80s and 90s. A warm and wet weather system with heavy showers will continue across the east-central and Northeast US today into Wed.
The northern US will be mostly comfortable with upper 60s to lower 80s besides cooler over the N. Plains w/highs of 50s. Stronger cool fronts will push into the northern & south-central US Wed-Sun, then warming early next week.
Overall, demand will be MODERATE, locally HIGH. The EIA reported that the average total supply of natural gas rose by 1% compared with the previous report week. Dry natural gas production grew by 1% week on week, exceeding 83 Bcf per day for a second week in a row and averaging 83.9 Bcf per day.
Total U.S. consumption of natural gas rose by 5% compared with the previous report week, according to the EIA Energy.
Trading Ideas:
–Natural gas trading range for the day is 218.6-225.6.
–Natural gas rose amid storage worries as the weather across much of the country remained warmer than normal.
–Colder than normal weather is forecast to cover most of the mid-west increasing heating demand ahead of the inventory withdrawal season.
–The EIA reported that the average total supply of natural gas rose by 1% compared with the previous report week.
Courtesy: Kedia Commodities
Source: Commodityonline.com
