Copper Market Update By Ripples Advisory
Copper on MCX settled up 1.6% at 317.65 as funds reversed positions betting on price falls, but gains were limited both by a surge in Chinese exports that raised concerns about global oversupply and a stronger dollar.
Also Chinese trade data showed copper exports in May surged by 256 % on the year to 84,959 tonnes, overshadowing a 15.9 percent rise in imports. Content This No 9827808090.
Support also seen as stocks continued to slide on LME, dropping 1,850 tonnes to 192,175 tonnes, although market participants generally expect more material to arrive into LME-listed warehouses due to favourable warehouse incentives.
Speculators are acting on the gloomier outlook by adding to bearish positions. The total net long position of funds trading copper on the London Metal Exchange fell to 4,163 lots last Friday from a net long position of 9,837 lots the previous week, the LME's Commitments of Traders Report (COTR) showed on Tuesday. Technically market is getting support at 312.1 and below same could see a test of 306.5 level, And resistance is now likely to be seen at 320.6, a move above could see prices testing 323.5.
Trading Ideas
Also Chinese trade data showed copper exports in May surged by 256 % on the year to 84,959 tonnes, overshadowing a 15.9 percent rise in imports. Content This No 9827808090.
Support also seen as stocks continued to slide on LME, dropping 1,850 tonnes to 192,175 tonnes, although market participants generally expect more material to arrive into LME-listed warehouses due to favourable warehouse incentives.Speculators are acting on the gloomier outlook by adding to bearish positions. The total net long position of funds trading copper on the London Metal Exchange fell to 4,163 lots last Friday from a net long position of 9,837 lots the previous week, the LME's Commitments of Traders Report (COTR) showed on Tuesday. Technically market is getting support at 312.1 and below same could see a test of 306.5 level, And resistance is now likely to be seen at 320.6, a move above could see prices testing 323.5.
Trading Ideas
- Copper trading range for the day is 306.5-323.5.
- China's copper imports jumped by 15.9 percent to 319,255 tonnes in May, data from the country's General Administration of Customs showed.
- Copper stocks held in London Metal Exchange warehouses in Asia are set to jump by around 50 percent next month.
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