Reduced Supply Boosts Copper Futures

After recent deadly accidents, the world’s second-largest copper mine remains closed while authorities continue to investigate.  Copper futures have been boosted to their highest price in a week on the prospects of reduced supply regarding this manner.

This copper mine is located in Indonesia and is expected to be closed as long as three months.  If shut-down for this long a period, it is expected to remove approximately 140,000 metric tons of the copper supply.    

Kevin Craney, a senior commodities broker at RJO Futures in Chicago, had this to say regarding the current copper futures situation, “Supply concerns continue to support the copper market; however, fundamental economic conditions must be watched.  If the economy remains sluggish, then this may send copper prices lower in the intermediate term.”

After copper futures briefly reaching two-year lows this time last month, a new up-trend seems to be emerging.  I will be looking to enter long copper futures on pull-backs only in the near-term.

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