Copper likely to trade in a range between 400.5-416.3
NCDEX Soyabean under short covering
NCDEX Ref.Soya Oil may trade in range between 727-747
Crude Oil market under short covering; Support seen at 3174
MCX Crude Palm Oil under short covering
Technically Natural Gas market is under fresh buying as market has witnessed gain in open interest by 2.01% to settled at 3911 while prices up 1.2 rupees.
Now Natural Gas is getting support at 204.1 and below same could see a test of 200 level, And resistance is now likely to be seen at 212.9, a move above could see prices testing 217.6.
Natural Gas on MCX settled up 0.58% at 208.2 on short covering after prices dropped on forecasts for warmer weather and lower demand through mid-January. Meteorologists predicted the weather would remain warmer than normal through Jan. 13 before turning seasonally cold for a few days.
The warmth will allow utilities to keep more gas in storage than usual for a few more weeks, cutting the vast storage deficit. Stockpiles are 19 percent below normal for this time of year and at their lowest in 13 years.
The premium of March futures over April, a spread traders use to bet on winter weather, plunged over 90 percent to a record low from an all-time high in November because of warmer forecasts. Since early November, the combination of changing weather forecasts and low stockpiles has kept futures volatility at its highest in years.
The extreme volatility boosted average daily volume (ADV) on the NYMEX to an all-time annual high in 2018. With the weather turning warmer, Refinitiv projected gas demand in the Lower 48 states would slide to 103.3 billion cubic feet per day (bcfd) next week from 104.6 bcfd this week.
Gas output in the Lower 48 has averaged a near-record high of 86.9 bcfd over the past 30 days. On a daily basis, however, production slipped to 86.0 bcfd on Tuesday, its lowest in two weeks, according to Refinitiv data.
Trading Ideas:
–Natural Gas trading range for the day is 200-217.6.
–Natural gas gained on short covering after prices dropped on forecasts for warmer weather and lower demand through mid-January.
–Meteorologists predicted the weather would remain warmer than normal through Jan. 13 before turning seasonally cold for a few days.
–That warmth will allow utilities to keep more gas in storage than usual for a few more weeks, cutting the vast storage deficit.
Courtesy: Kedia Commodities
Source: Commodityonline.com
