MCX Mentha Oil under fresh buying; Resistance seen at 1261
MCX Aluminium under fresh buying; Resistance seen at 146.1
NCDEX Chana under short covering; Resistance seen at 4298
MCX Cotton under fresh selling; Resistance seen at 21540
MCX Nickel under fresh buying; Support seen at 885.4
Natural Gas on MCX settled down -1.71% at 172 on expectations that the current glut of the fuel could shrink faster than expected. Prices on Thursday jumped to a nine-month high after government data showed a supply gain that fell short of estimates, signaling production declines. Natural-gas stockpiles rose by 65 billion cubic feet last week, less than the 79 bcf increase that expected, the Energy Information Administration said Thursday. The inventory surplus to the five-year average contracted for a ninth straight week.
Natural gas has surged from a 17-year low in March on speculation that a sweltering summer will boost demand for the fuel from power plants as explorers in shale reservoirs curtail production. The energy rout has pushed the number of rigs drilling for gas in the U.S. to the lowest since at least 1987. Gas production in the lower 48 states is down 1.5 percent from a record 82.81 billion cubic feet a day in February, data from PointLogic Energy show.
Temperatures may be above normal in parts of the central U.S. through June 23, according to Commodity Weather Group LLC. prices have rallied as unusually hot weather boosted power-plant demand while the formation of Tropical Storm Colin in the southern Gulf of Mexico stoked concern about storms curtailing output later in the Atlantic hurricane season. Technically market is under long liquidation as market has witnessed drop in open interest by -28.02% to settled at 7990 while prices down -3 rupee, now Natural gas is getting support at 170.4 and below same could see a test of 168.9 level, and resistance is now likely to be seen at 174, a move above could see prices testing 176.1.
--Natural gas trading range for the day is 168.9-176.1.
--Natural gas prices ended with losses on expectations that the current glut of the fuel could shrink faster than expected.
--Prices on Thursday jumped to a nine-month high after government data showed a supply gain that fell short of estimates, signaling production declines.
--Natural gas has surged from a 17-year low in March on speculation that a sweltering summer will boost demand as explorers in shale reservoirs curtail production.Courtesy: Kedia Commodities