Copper futures have extended their lows to prices not seen June of 2010 on the outlook of Greece leaving the European Union and possibly defaulting on debt and souring the European demand outlook. Copper futures are down over 500 points (as of this writing) at New York’s Commodity Exchange.
Apparently there are some Greek politicians that are vowing to ditch austerity measures should they win their election later this month. Last year, copper futures slid 17% on the outlook for slowing industrial metal demand from China and Europe.
Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, shared his fundamental analysis insight regarding the current high-grade copper futures situation by stating, “The current situation in Greece doesn’t help the growth outlook.” Craney added, “The only silver-lining I could see for copper futures is a significant improvement in China’s way, but that will also take some time.”
The trend for copper futures is down with no bottom yet in sight. We exited copper futures we held over the weekend, but am looking for another way back in the short-side of this market.
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