Commodity outlook: MCX crude may edge higher; guar gum may trade in a range

NEW DELHI: Crude oil looks robust on Wednesday while base metals counter can trade sideways as short covering can be seen, says SMC Global Securities in its daily commodity report.

Here’s a look at the how the key commodities are likely to perform in today’s trade:

Crude oil: It can take support near Rs 4,780 and may move higher to Rs 4,860 on MCX. The United States demanded all countries stop imports of Iranian oil from November, Reuters reported.

Natural Gas: Natural gas can trade with sideways to upside bias as it can take support near Rs 196 and move towards Rs 204.

Bullion Counter: Gold can take support near Rs 30,400 and can face resistance near Rs 30,700 on MCX. Meanwhile, silver can take support near Rs 39,400 and may face resistance near Rs 39,900.

Base metals: Copper can find support near Rs 448 and resistance near Rs 456. The forward curve of the LME copper market has tightened remarkably – the cash/three-month spread has averaged a small contango of $ 1 per tonne, compared with an average contango of $ 32 per tonne so far this year, the brokerage says.

Zinc can take support near Rs 196 and resistance near Rs 201 while lead can take support near Rs 163 and can face resistance near Rs 166.

Nickel may take support near Rs 1,000 and can face resistance near Rs 1,025.

Agri commodities
Guar seed futures (July) is likely to trade sideways in the range of Rs 3,550-Rs 3,650 levels; while guar gum futures (July) may consolidate in the range of Rs 7,450 – Rs 7,550 levels.

Soybean futures (July) may take support near Rs 3,385 levels and trade with an upside bias.

Mustard seed futures (July) will possibly face resistance near Rs 3,975 levels and the short covering may remain capped.

Coriander futures (July) is expected to take support near Rs 4,430 levels and the downside may remain capped.