Commodity outlook: Natural gas plunges 5%; here’s how others may fare during the day

Crude oil traded with gains on Monday as oil fields in southwest Libya began shutting down after forces loyal to Khalifa Haftar closed a pipeline, potentially reducing national output to a fraction of its normal level.

Crude oil futures on MCX were up 1.39 per cent to Rs 4,220, while natural gas sank 4.69 per cent to Rs 136.10.

On NCDEX, castor seed, chana, mustard seeds, soybean and refined soybean oil were in the green while coriander, jeera and kapas were in the red.

Here is how SMC Global expects commodities to fare today:

Bullion: Bullion counters may witness sideways movement. Gold can recover towards Rs 40,100 while taking support near Rs 39,600, while silver can test Rs 47,000 while taking support near Rs 46,500.

Base metals: Base metals may trade with a mixed bias. Copper may recover towards Rs 457 while taking support near Rs 452. Zinc can recover towards Rs 185 while taking support near Rs 182. Lead may trade sideways to upwards testing Rs 153 by taking support near Rs 150. Nickel may recover towards Rs 1,030 while taking support near Rs 1,015. Aluminium may recover towards Rs 142 while taking support near Rs 139.

Energy: Crude oil may witness lower-level buying. It can recover towards Rs 4,250 while taking support near Rs 4,160. Natural gas can dip lower to Rs 130 while facing resistance near Rs 145.

Spices: Turmeric futures (Mar) are expected to consolidate in the range of Rs 6,200-6,500 and trade with a downside bias. Jeera futures (Mar) may trade sideways in the range of Rs 15,000-15,300. Dhaniya futures (Apr) are expected to trade sideways in the range of Rs 6,850-7,100.

Oilseeds: Soybean futures (Feb) may continue to witness correction on every pullback and if it breaks Rs 4,155, then the probabilities are higher that it may plunge to test Rs 4,080-4,050. Mustard futures (Feb) are expected to fall for a third consecutive week and test Rs 4,235-4,200. CPO futures (Feb) are expected to trade with a downside bias and test Rs 770-760, while soy oil futures (Feb) will probably go down further to test Rs 865-860.

Other commodities: Cotton futures (Jan) will possibly remain stable in the range of Rs 19,800-20,000. Chana futures (Mar) may trade below Rs 4,255 and fall further to test Rs 4,230-4,200. Mentha oil futures (Jan) may go down further to test Rs 1,250-1,240.