MCX Copper may trade in a range between 404.2-414.6
MCX Crude Oil may trade between 3325-3539 levels
NCDEX Soyabean under fresh buying; Resistance seen at 3526
NCDEX Ref.Soya Oil likely to trade in range between 729-745
MCX Crude Palm Oil under short covering; Support seen at 531.2
Technically Natural Gas market is under fresh selling as market has witnessed gain in open interest by 10.8% to settled at 4000 while prices down 4.8 rupees.
Now MCX Natural Gas is getting support at 202.7 and below same could see a test of 200.2 levels and resistance is now likely to be seen at 208.7, a move above could see prices testing 212.2.
Natural Gas on MCX settled down 2.28% at 205.30 dropped on fresh selling despite a smaller than expected draw in natural gas inventories reported last week. Prices bounced at support, even though the weather is expected to be warmer than normal over the next 8-14 days according to NOAA.
The EIA reports that the average total supply of natural gas fell by 1% compared with the previous report week. Dry natural gas production remained constant week over week. Average net imports from Canada decreased by 3% from last week. Demand falls, driven by decline in residential and commercial consumption.
Total U.S. consumption of natural gas fell by 16% compared with the previous report week, according to the EIA. The largest decrease in consumption came in the residential and commercial sectors, where natural gas use declined by 25% with warmer-than-normal weather across the Lower 48 states.
Natural gas consumed for power generation declined by 11% week over week. Industrial sector consumption decreased by 3% week over week. Natural gas exports to Mexico decreased 2%. The EIA reported on Friday that working gas in storage was 2,705 Bcf. This represents a net decrease of 20 Bcf from the previous week.
Expectations were for a decline of 48 Bcf. Stocks were 450 Bcf less than last year at this time and 560 Bcf below the five-year average of 3,265 Bcf. At 2,705 Bcf, total working gas is below the five-year historical range.
Trading Ideas:
–Natura Gas trading range for the day is 200.2-212.2.
–Natural Gas fell on forecasts for less heating demand over the next two weeks than previously expected.
–The ongoing warmth will allow utilities to keep more gas in storage than usual for at least a couple more weeks, cutting the vast storage deficit.
–Stockpiles are now 17 percent below normal for this time of year and at their lowest in 13 years.
Courtesy: Kedia Commodities
Source: Commodityonline.com
