Copper futures are once again lower and have erased all its gains for the year as Goldman Sachs is predicting a “supply storm” to hit the markets and erode copper prices even more. Copper futures are down another 15 points today ending the day trading at $2.0775 per pound at the New York Commodity Exchange.
Which stockpiles of inventory reportedly building, such as that in the London Metals Exchange reaching a ten-month high, and supplies said to be moving out of China to warehouses, the evidence of such build-up is what is creating the bearish outlook. Other metals may be shining so far this year, but copper is proving to be lackluster.
“There’s just no stomach for investors to push their longs in copper,” said Bob Minter, a Philadelphia-based investment strategist at Aberdeen Asset Management, sharing his fundamental assessment of the copper futures market. Minter added, “the second half of the year is traditionally a challenging time for many of the industrial commodities, so seasonality is working against copper at this point too.”
Copper futures trend is clearly “down” with no bottom yet in sight. Before getting short copper futures at these levels, I would await a bounce in this market in an effort to lower risk.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.
Recent Comments