MCX Natural Gas under long liquidation; Support seen at 124.1
Commodity Online | June 23 2020
UPDATED 10:00:46 IST

MCX Gold under short covering; Resistance seen at 49465

MCX Silver under long liquidation; Support seen at 65712

MCX Crude Oil under fresh selling; Support seen at 3781

MCX Natural Gas under long liquidation; Support seen at 176.7

MCX Copper under fresh selling; Resistance seen at 614.8

Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 3.77% to settled at 14439 while prices down 2.2 rupees.

Now MCX Natural Gas is getting support at 124.1 and below same could see a test of 122.2 levels, and resistance is now likely to be seen at 129.1, a move above could see prices testing 132.2.

Natural Gas yesterday settled down by 1.72% at 125.9 as rising daily output offset forecasts for warmer-than-normal weather and higher air conditioning demand over the next two weeks.

Refinitiv said production in the Lower 48 U.S. states averaged just 87.6 billion cubic feet per day (bcfd) in June, down from a 16-month low of 88.2 bcfd in May and an all-time monthly high of 95.4 bcfd in November.

On a daily basis, however, output hit a one-month high of 88.3 bcfd this week, up from a 19-month low of 85.7 bcfd in late May.With warmer weather coming, Refinitiv forecast U.S. demand, including exports, would rise from 77.8 bcfd this week to 85.8 bcfd next week and 87.1 bcfd in two weeks.

That is higher than Refinitiv's outlooks from Monday-Thursday. The amount of pipeline gas flowing to U.S. LNG export plants averaged just 4.0 bcfd (41% utilization) in June, down from an eight-month low of 6.4 bcfd in May and a record high of 8.7 bcfd in February.

Utilization was about 90% in calendar 2019. U.S. pipeline exports, meanwhile, are rising as North American consumers crank up their air conditioners. Refinitiv said pipeline exports to Canada averaged 2.3 bcfd in June, up from a seven-month low of 2.2 bcfd in May but still well below the all-time monthly high of 3.5 bcfd in December.

Trading Ideas:
--Natural Gas trading range for the day is 122.2-132.2.
--Natural Gas dropped as rising daily output offset forecasts for warmer-than-normal weather and higher air conditioning demand over the next two weeks.
--Refinitiv said production in the Lower 48 U.S. states averaged just 87.6 billion cubic feet per day (bcfd) in June.
--On a daily basis, however, output hit a one-month high of 88.3 bcfd this week, up from a 19-month low of 85.7 bcfd in late May.

Courtesy: Kedia Commodities

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