Copper futures did a complete “about-face” today after yesterday’s run-up to the $3.10 level. Copper futures are back trading below $3.00 today after it was learned weaker US & Chinese inflation numbers are signaling slowing economies and less industrial metals demand.
Separate domestic and Chinese reports today revealed for the first time in a year, US wholesale prices fell unexpectedly last month. At the same time, reports from China show costs to consumers there rose at the slowest pace in almost five years. The significance here is these two countries represent the planet’s biggest copper consumers.
“Disappointing economic data continues to weigh on the copper (futures) market. With Europe’s economy in shambles, any signs of a slowdown in the US could put the nail in the coffin for anything industrial, particularly copper,” said Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, sharing his insight regarding the current copper futures situation.
The trend for copper futures, although technically down, have been choppy at best. I will consider shorting copper futures on a pullback soon.
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