Copper Futures Lower Amid Hedge Funds Bailing

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...

China’s Economy May be Foretold by Copper Futures

Copper futures continue to falter as lack of movement in China’s copper inventories tell of a market with slack demand. Copper futures are down 130 points today currently trading at $2.1520 per pound for September delivery at the Commodity Exchange in New York City. China is the worlds largest importer of copper and user of the industrial metal by making grand items used for infrastructure and as small as coins. Right now China’s economic numbers do not project growth and the lack of demand in current inventories is corroborating the outlook for the copper market. BMI Research, a leading industry analyst group, shared their fundamental view of the copper futures market by stating, “We expect China’s refined copper imports to decelerate over the remainder of the year, and will remain wary of any other rapid movements in inventories.” BMI adds, “While the corresponding decline in Shanghai inventories largely offset the jump in [London Metal Exchange], the shift suggests that China’s strong H116 economic data does not in fact reflect improving demand growth.” The trend for copper futures has just turned “down” as of Friday. Copper futures overall remain range-bound, however since March. 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...

Copper Futures Higher on Chinese Economy Expectations

Copper futures have extended yesterday’s rally as hopes build for Chinese policy-makers to introduce further stimulus measures following a number of disappointing economic reports recently. Copper futures are up 70 points today, currently trading at $2.4225 per pound at New York’s Commodity Exchange. The “soft-inflation” news earlier this week includes Chinese imports declining more than 20% last month. Plus, a slow-down of China’s domestic brands is indicating their broader economy is rather fragile and in need of further government stimulus. China is the biggest consumer of copper, and last year alone they accounted for nearly 40% of global consumption. “The copper (futures) trade seems to be in a holding pattern until further supply/demand assessments can be made,” said Laura Taylor, a senior market strategist at RJO Futures in Chicago, sharing her fundamental assessment of the copper futures market. Taylor adds, “With one country accounting for nearly half of all global consumption last year, all eyes are on the Chinese government to see how they handle their economy.” The trend for copper futures is down, however a bottom formation appears to be unfolding. A “double-bottom” that begins in late August and as late as the end of last month looks as if a base if forming, but copper futures will have to trade and follow-through above $2.50 for the trend to change direction. 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...

Slowing Demand for Supply Weighing on Copper Futures

Copper futures are said to be spiraling lower not only because demand has been hampered for the raw material, but now there’s confirmation of that by the lack of requests to withdraw copper from the London Metal Exchange warehouses – the lowest since March, 2013. Copper futures is down $4.50 per pound today (as of this writing), currently trading at $2.38 at New York’s Mercantile Exchange. Copper is used in many things in our daily life, such as car’s, electronic devices and power lines, but stockpiles of the industrial metal have reportedly doubled over the last two years as consumption has all but dried-up. China, the world’s biggest copper consumer, is experiencing slower economic growth hampering demand for the metal, but they are just one country of many. “There is simply too much physical copper available with a fundamental view,” said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, regarding the fundamental assessment of the copper futures markets. Craney added, “Being that copper is considered an ‘industrial metal,’ it may take not only China’s economy, but other nation’s economy to turn the copper market around.” Copper futures trend is clearly down with no bottom in sight. A bounce higher should be required before traders even consider taking a short position because the risk (volatility) is quite high. 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...

Copper Futures Hover at Two-Week Highs Amid Greek Default

Copper futures have been back-and-forth in prices this week with the Greek debt issue and the nation’s potential departure from the Euro-community fresh on traders minds. Copper futures settled today at $2.6295 per pound, up $0.0120 for the day at New York’s Commodity Exchange. Copper futures had been trading at four month highs in mid-May, but just last month had fallen to four month “lows.” Coming into the confrontation week for Greek default, copper futures are near two-week highs. Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, shares his view regarding the fundamental assessment of the copper futures markets by stating, “Copper futures are having a heck of a time with price discovery.” Brady added, “Between the non-starter economy in China, and a possibly Greek default and departure from the European Union, the trade is still looking for some concrete direction it seems.” The trend for copper futures is down with no bottom yet in sight. With the nation holiday ahead of us, if copper futures can’t find direction before Friday then perhaps the trade needs to get the holiday behind them. 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...

Two-Week High Can’t Hold for Copper Futures

Copper futures reacted to Chinese economic market data by selling-off after mostly in-line with market expectations after reaching a two-week high only yesterday. Copper futures settled down just over .70 cents today at $2.673 per pound at New York’s Commodity Exchange. The Chinese government data revealed their industrial production rising by a rate of 6.1% (annualized) last month – just above a 6% increase, and following a 5.9% gain in April. This information comes after it has been learned that China’s economy grew at the slowest pace in six years in the first quarter. “There are signs that the fragile Chinese economy will need to be shored-up to prevent a further slowdown,” said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, sharing his view regarding the fundamental assessment of the copper futures market. Craney added, “This is what the copper traders are most likely responding to.” Copper futures newly emerged down-trend has broke down to lower lows not seen since March & April. Next level of support comes in at the $2.56 level. 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...