Copper Futures Responding to China Easing

The media has been reporting it, but here is the evidence adding to the gains in copper futures: American building permits have jumped to a four-year high which corroborate the improving housing industry.  Copper futures have responded by rising for the second time in three days.

US building permits have apparently risen to levels not seen since this month in 2008 – an 812,000 annual pace according to US Commerce Dept. figures.  About 40% of all copper demand is initiated in new construction in the form of pipes, and electrical wiring.

Kevin Craney, a senior commodities broker for RJO Futures in Chicago, had this to say regarding the current copper futures situation, “Recent macroeconomic data out of the U.S. has been supportive of copper.”  Craney added, “The consolidation (with copper futures) pattern continues, and in order to break out of this consolidation pattern it will take fresh economic data pointing toward a stronger recovery in the global economy.”

The trend for copper futures, although technically down, has been rather sideways.  I am only seeking lower risk trades when copper futures find resistance until a clear copper futures picture unfolds.

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