Zinc market under fresh selling; Support seen at 175
Copper market under fresh selling; Support seen at 417.1
Crude Oil market under short covering; Support seen at 4599
NCDEX Turmeric under fresh selling; Resistance seen at 7233
NCDEX Mustard Seed under fresh buying; Support seen at 4118
Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 4.87% to settled at 5979.
Now Natural Gas is getting support at 201.7 and below same could see a test of 200.2 levels and resistance is now likely to be seen at 204.2, a move above could see prices testing 205.2.
Natural Gas settled flat as forecasts for cooler weather than previously expected and record production offset worries about low inventories. The U.S. Energy Information Administration reported that domestic supplies of natural-gas stockpiles rose by 46 billion cubic feet for the week-ended August 3.
Traders were looking for a storage build of 43 to 45 Bcf. Total stocks now stand at 2.354 trillion cubic feet, down 671 billion cubic feet from a year ago and 572 billion below the five-year average, the government said. Prices could spike if forecasts start to show this winter will be cold since inventories ahead of the heating season are at their lowest for this time of year in 15 years.
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Overall futures volatility has remained relatively low since February as the market cannot decide whether to fall because production is at record levels or rise because the amount of gas in storage is about 20 percent below the five-year (2013-2017) average.
Temperatures across much of the country, however, have held steady at above-normal levels since the start of June and are forecast to remain higher than normal through at least late August, though not as hot as previously expected.
Production in the Lower 48 U.S. states averaged a record high 81.1 billion cubic feet per day (bcfd) over the past 30 days. On a daily basis, output rose to an all-time high of 81.9 bcfd on Monday, according to data.
Trading Ideas:
–Natural Gas trading range for the day is 200.2-205.2.
–Natural gas traded in range following the release of a government report showing a weekly storage build that was in line with estimates.
–Warmer than normal weather is expected to cover most of the United States for the next 8-14 days.
–The amount of natural gas in US storage facilities increased 46 Bcf to 2.354 Tcf in the week that ended August 3, the US Energy Information Administration reported.
Courtesy: Kedia Commodities
Source: Commodityonline.com
