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Commodity outlook: Natural gas jumps; here’s how others may fare today

Agri commodities were trading mixed while metals and bullion counters slipped on Friday amid US and China putting a timeline for formal signing of the trade deal.

US Treasury Secretary Steven Mnuchin said on Thursday that US and China would sign their so-called Phase one trade pact at the beginning of January, adding that it would not be subject to any renegotiation.

All commodity futures barring natural gas were trading in the red. Nickel, copper and zinc were down 0.1-0.3 per cent on MCX. Crude oil was flat with a negative bias and gold and silver slipped up to 0.2 per cent. Natural gas surged 2.3 per cent to Rs 164.40.

On NCDEX, castor seed, guar gum, guar seed, soybean and soybean oil traded with gains while turmeric, jeera and chana slipped.

Here is how SMC Global expects commodities to trade today:

Bullion: Bullion counters may trade sideways to weak. Gold can dip towards 37,900 while facing resistance near Rs 38,100 and silver can dip towards Rs 44,400 while facing resistance near Rs 44,800.

Base metals: Base metals may trade sideways. Copper may test Rs 446 while taking support near Rs 440. Zinc can recover towards Rs 184 while taking support near Rs 182. Lead may trade sideways taking support near Rs 151 and face resistance at Rs 155. Nickel may bounce back towards Rs 1,050 while taking support near Rs 1,020. Aluminum may dip towards 133 while taking resistance near 135.

Crude oil: Crude oil may trade with an upside bias. It can move towards Rs 4,400 while taking support near Rs 4,310. Natural gas can bounce towards Rs 165 while taking support near Rs 160.

Spices: Turmeric futures (Mar) are expected to face resistance near Rs 6,300. Jeera futures (Jan) may consolidate and trade sideways in the range of Rs 15,940-16,100. There is a high probability that cardamom futures (Jan) will take support near Rs 3,160.

Oilseeds: Soybean futures (Jan) have the potential to reach for Rs 4,360-4,380 taking support near Rs 4,300. Mustard futures (Jan) are most likely to trade with an upside bias and test Rs 4,600-4,620 on the higher side. Soy oil futures (Jan) are seen taking support near Rs 900 and maintain its uptrend to test Rs 915-920. CPO futures (Jan) are expected to hold above the support level near Rs 728 and trade on a bullish note to test Rs 750-755.

Other commodities: Cotton futures (Dec) are expected to trade sideways to downwards in the range of Rs 19,000-19,200. Chana futures (Jan) are expected to face resistance near Rs 4,500. The upward moves in castor seed futures (Jan) are expected to face resistance near Rs 4,400-4,420.

Source: Economic Times