Nickel market under short covering; Support seen at 770.9
Zinc market under short covering; Support seen at 186.6
MCX Copper likely to trade in a range between 429.5-443.9
NCDEX Soyabean under fresh buying; Resistance seen at 3344
NCDEX Ref.Soya Oil under fresh buying; Support seen at 731
Natural Gas on MCX settled up 5.13% at 324 on a bigger-than-usual weekly storage draw and a midday forecast calling for colder weekend weather. The U.S. Energy Information Administration (EIA) said utilities pulled a greater-than-usual 63 billion cubic feet of gas from inventories during the cold week ended Nov. 30.
The decrease cut stockpiles to 2.991 trillion cubic feet (tcf), 19.5 percent below the five-year average of 3.716 tcf for this time of year and the lowest for the week since 2002. Since the middle of November, the combination of changing weather forecasts and low stockpiles have kept futures prices and volatility at their highest levels in years.
In their midday forecast, meteorologists said they expected colder weather over the weekend, but stuck to an earlier prediction that the weather would turn warmer through late December. The outlook for heating demand rose slightly because boosted its total degree day (TDD) outlook for the Lower 48 U.S. states, which means slightly more gas should be used to heat homes.
Projected gas demand in the Lower 48 would rise to 111.8 billion cubic feet per day (bcfd) next week before falling to 105.4 bcfd in two weeks as the weather warms. That compares with expected demand of 104.8 bcfd this week. Gas output in the Lower 48 has averaged a record high 87.4 bcfd over the past 30 days. On a daily basis, production was 87.6 bcfd x, down from an all-time high of 89.0 bcfd on Nov. 30, according to data.
Trading Ideas:
–Natural Gas trading range for the day is 289.5-343.3.
–Natural Gas surged on a bigger-than-usual weekly storage draw and a midday forecast calling for colder weekend weather.
–EIA said utilities pulled a greater-than-usual 63 billion cubic feet of gas from inventories during the cold week ended Nov. 30.
–The decrease cut stockpiles to 2.991 tcf, 19.5 percent below the five-year average of 3.716 tcf for this time of year and the lowest for the week since 2002.
Courtesy: Kedia Commodities
Source: Commodityonline.com
