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LME Copper Prices May Witness Trading At $6540 Up By 0.95%

ByCommodityOnline
Published 03/18/2014, 05:48 AM
Updated 05/14/2017, 06:45 AM



3 month forward copper prices at LME traded marginally higher on Monday and settled at $6480 up by $11 from its previous close. In the similar lines copper prices at Shanghai, COMEX and MCX traded with a marginal gain. We believe the commodity had fallen hard in the recent past therefore, a good amount of price recovery was anticipated. In fact lower price of copper commodity may have attracted physical buyers to take buying positions in the physical market. Also, there has been a good amount short covering in the previously held short positions as suggested in the CFTC report meanwhile; metal consumers in Europe were also purchasing the metal to take advantage of lower price. Copper stockpiles monitored by the LME rose for the first time in nine sessions, by 0.8% to 253,375 tons, the most since September. Copper for immediate delivery traded at a $22-a-ton premium to the contract for delivery in three months, compared with $45 two weeks ago.

This morning 3 month forward LME copper prices are trading at $6540 up by 0.95% from its previous close. Likewise, SHFE copper for May delivery is trading up by 1.16% at Yuan 45,180 per MT. We believe this may be a temporary gains or a beginning of a fresh buying trend. For the day we expect this commodity to trade positive. However, by this time in Asia the gains are already more than a per cent in copper so as the day progresses possibly further gains could be minimal. We may today have to keenly watch the inventory performance. Any further rise in stocks might again pull the commodity to trade down. So for the day we hold a buy view from lower levels in the morning while by end of the day it may retreat the gains.

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