NCDEX Ref.Soya Oil may trade in range between 731-749
NCDEX Soyabean likely to trade in range between 3470-3656
Mentha Oil likely to trade in a range between 1601.5-1677.3
Aluminium market under fresh selling; Support seen at 129.8
MCX Nickel may trade in a range between 765.7-798.3
Technically Natural Gas market is under short covering as market has witnessed drop in open interest by 17.68% to settled at 3293 while prices up 7 rupees.
Now Natural Gas is getting support at 206.2 and below same could see a test of 200.1 levels and resistance is now likely to be seen at 216.6, a move above could see prices testing 220.9.
Natural Gas on MCX settled up 3.41% at 212.30 in the line of expectation gained on short covering prices whipsawed attempting to move higher but running into resistance towards 215 level. A warmer than normal forecast for the next 6-14 days from the National Oceanic Atmospheric Administration is undermining prices.
While inventories remain below the 5-year average range for this time of year, the trajectory is becoming less negative, which is allowing prices to remain subdued. The top end of the 5-year average price range is $6.49 per mmbtu.
The EIA recently reported that withdrawals from working gas storage are lower than the five-year average for the second week in a row. Net withdrawals from storage totaled 141 Bcf for the week compared with the five-year average net withdrawals of 144 Bcf and last year’s net withdrawals of 166 Bcf during the same week.
Working gas stocks totaled 2,773 Bcf, which is 720 Bcf lower than the five-year average and 697 Bcf lower than last year at this time. Working gas stocks’ deficit to the five-year average decreased, according to the EIA, and the deficit to the bottom of the five-year range increased.
In the Lower 48 states, total working gas stocks are 450 Bcf lower than the five-year minimum, and every storage region is currently lower than the bottom of its five-year range. The weather is the only thing keeping prices capped.
Trading Ideas:
–Natural gas trading range for the day is 200.1-220.9.
–Natural gas edged higher on forecasts for colder weather than previously expected in late January as the market took a break from weeks of extreme volatility.
–In their latest forecasts, meteorologists predicted the weather would remain mostly warmer than normal to seasonally cold through Jan. 17.
–The warmth expected this week should allow utilities to reduce the vast storage deficit by leaving more fuel in underground storage facilities.
Courtesy: Kedia Commodities
Source: Commodityonline.com
