MCX Natural Gas under fresh selling; Support seen at 157.9
Commodity Online | October 10 2019
UPDATED 09:30:26 IST

MCX Mentha Oil likely to move in a range of 1259.7-1295.5

MCX Aluminium may trade between 130.5-132.3 levels

MCX Nickel under long liquidation; Support seen at 1091.2

MCX Zinc under fresh selling; Resistance seen at 192.7

MCX Copper under fresh selling; Support seen at 435.2

Technically Natural Gas market is under fresh selling as market has witnessed gain in open interest by 15.93% to settled at 22979 while prices down 3.4 rupees.

Now MCX Natural Gas is getting support at 157.9 and below same could see a test of 156.1 levels, and resistance is now likely to be seen at 163, a move above could see prices testing 166.3.

Natural Gas on MCX settled down 2.08% at 159.8 on expectations of big storage injections to come, despite forecasts that heating demand and liquefied natural gas (LNG) exports will rise more than previously expected over the next two weeks.

Refinitiv projected gas demand in the lower 48 U.S. states would reach 82.5 billion cubic feet per day (bcfd) this week and 85.2 bcfd next week, up from its previous forecasts on Monday of 82.3 bcfd for this week and 84.5 bcfd for next week. Most of that increase in demand is due to cooler forecasts that will boost heating demand faster than power generator cooling demand declines.  Utilities likely added 88 billion cubic feet (bcf) of gas to storage during the week ended Oct. 4.

That compares with an injection of 91 bcf during the same week last year and a five-year (2014-18) average build of 89 bcf for the period.The amount of gas in inventory has remained below the five-year average since September 2017. It fell as much as 33% below that in March 2019. But with production close to a record high, said stockpiles should reach a near-normal 3.7 tcf by the end of summer injection season on Oct. 31. Gas production in the lower 48 states edged up to 92.9 bcfd on Monday from 92.5 bcfd on Sunday, according to Refinitiv data. That compares with an average of 93.1 bcfd last week and an all-time daily high of 93.8 bcfd on Sept. 29.

Trading Ideas:
--Natural Gas trading range for the day is 156.1-166.3.
--Natural Gas slipped on expectations of big storage injections to come, despite forecasts that heating demand.
--Most of that increase in demand is due to cooler forecasts that will boost heating demand faster than power generator cooling demand declines.
--Utilities likely added 88 billion cubic feet (bcf) of gas to storage during the week ended Oct. 4.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 180 9400.00
Coconut Oil 2 18200.00
Arecanut 0.96 22400.00
Sugar 174 3332.00

More