Copper on MCX settled down -1.63% at 319.05 marking its third straight session of losses as investors continued to remain risk averse in the aftermath of Britain’s decision to leave the European Union. 

A Benchmark copper on the LME closed down 1.4 per cent at $4685 a tonne, the weakest since June 27 extending losses of 1.4 per cent in the previous session. Furthermore, according to Bank of America Merrill Lynch sees more downside for the red metal, with Brexit indirectly contributing to the expected losses. 

While the bank noted that the UK alone is not important enough to drive a significant change in prices, it is the end of globalization that could have severe, long lasting impacts. When it comes to copper’s not too distant strength, they attributed it to China, but noted that Chinese copper remains well supplied. 

              Trading Ideas:  

• Copper trading range for the day is 314.4-327.6.                

• Top copper exporter Chile is expected to produce 5.74 million tonnes of the metal in 2016, down 0.5 percent from last year.      

• Copper’s contango on the LME is widening now, and is expected to expand further as more inventories will flow into LME warehouses