Archive for the ‘Copper Futures’ Category

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.

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.

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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.

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.

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Copper Futures Higher on Chinese Stimulus Outlook

Copper futures are beginning their rebound today from three-week lows on the outlook that weak Chinese factory activity may prompt the national government to introduce new stimulus measures to turn things around. Copper futures ended Thursday up 225 points at $2.8515 per pound at New York’s Commodity Exchange.

Interestingly it was data released by a popular bank’s “purchasing manager’s” index that revealed China’s data only inched-up by two-tenths of a point (to “49.1”) which missed expectations for better growth and below the benchmark level of “50” which would indicate growth in activity rather than contraction. China is the world’s largest copper consumer and used nearly 40% of copper resources just last year.

The trend for copper futures is up and there is no topping action yet in sight. I suspect the Chinese interest-rate cuts have helped prompt this market higher since its January lows.

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Chinese GDP Speculation Adds to Copper Futures Choppiness

Copper futures is once again in choppy trading with disappointing Chinese growth data prevailing the speculation that Beijing officials will have to do more to jumpstart their economy. Copper futures ended trading Wednesday at New York’s Commodity Exchange up almost .02c from the day before near $2.72 a pound.

The Chinese economy is said to have grown by 7% in the first quarter – which was forecasted – but down from an expansion rate of 7.3% from the prior quarter. This happens to be the slowest pace of growth for their country since the global financial crisis era in 2008.

The trend for copper futures are at a crossroad. The up-moves in copper fail to have immediate follow through thrust which keep me on the sidelines.

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Annual National Meeting in China Has Copper Futures on Edge

Copper futures have been stalled lower for the last two trading sessions ahead of China’s “National People’s Congress” annual meeting to be held Thursday. Copper futures closed up slightly – at $2.6595 per pound in today’s trading at the New York Commodity Exchange.

Investors and traders of copper futures understand how important a meeting this with China being the world’s largest consumer of the industrial metal – accounting for almost 40% of the world’s consumption last year. Just yesterday copper futures plummeted with concerns over the outlook of China’s economy and the appeal of the industrial metal with a stronger US dollar.

The trend for copper futures is at a crossroads. The technical trend is up, however a breakout above Monday’s high’s will change everything in my view.

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With Chinese Growth Seen Slowing, Copper Futures Near Five-Year Low

Copper futures is realizing the repercussions of the world’s largest industrial metal consumer’s industrial production slowing down. China’s industrial growth has seen its smallest gain in almost 15 years and copper futures is reflecting revelation currently down 900 points in New York’s Commodity Exchange.

Chinese government data reports last year’s metal-consumer’s earnings may have increased, albeit a meager 3.3%, but last month profit slid by 8% – the third straight month of declines. To make matters worst for copper futures, here in the US durable goods orders also fell for the fourth consecutive month and the US is the second biggest user of copper.

The trend for copper futures is nothing but down with new lows made just yesterday. We had a couple of copper futures trades earlier this month, but I need volatility to contract some before getting short this market once again.

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Commodity Collapse Includes Copper Futures

Copper futures is not immune to the current commodity collapse we are all witnessing recently – predominantly with energy, food, and livestock. It is the lack of global growth that has reigned in the high prices of just about everything, copper futures is no exception (down yesterday as much as 1,450 points in New York’s Commodity Exchange).

Copper prices are down as much as 8.6% in London yesterday and down the daily limit in Shanghai, China. …speaking of which, demand weakness for the industrial metal and lower energy costs combined with worse than expected economic statistics are reportedly driving copper prices down there. Even Deutsche Bank AG claims copper demand will grow at its slowest pace since 2009.

Copper futures are down with no bottom yet in sight. I will require copper futures to demonstrate some type of “relief rally” before looking to get short this market once again.

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Greek EU Concerns Help to Extend Lows on Copper Futures

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.

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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Copper Futures About-Face on Demand Risk

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.

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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With Dollar Gain, Sets-up Copper Futures Fall

Copper futures have retreated yet again today and are poised for their biggest drop in eight weeks as the strengthening US greenback may be waning the appeal of metals as an alternative investment. Copper futures are down $3.95 per pound as of this writing.

A highly recognized Industrial Metals Index has fallen three out of the last four business days after four consecutive monthly gains through last month on signs of improving domestic manufacturing demand. A spot dollar index, however, has reached a five-month high with domestic service industries expanding in July at reportedly their fastest pace since December 2005.

With global markets nervous it might keep copper (futures) prices lower,” stated Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, sharing his insight regarding the current copper futures situation.

Copper futures trend is technically still up, but with clear signs of possibly “topping” at these levels. Two consecutive lows below the $317.20 level could change the trend to down – at a crossroads.

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