Copper: Demand expectations are melting – TDS
|Commodity demand expectations embedded within the complex are melting alongside the decline in equity indices and yields, TDS senior commodity strategist Daniel Ghali notes.
Low bar for subsequent CTA selling activity
“This dynamic weighs on the entire complex, but we expect massive CTA selling activity in platinum markets this session, with CTAs likely to shed their entire book long and grow a net short position closer to its effective 'max short' position size.”
“While CTAs are already holding their effective 'max short' position in palladium, silver remains vulnerable to algo selling activity below the $25.80/oz mark. Copper markets are also being weighed down by algo selling activity, as CTAs finally start to shed their books long as we have expected following massive liquidations from macro funds.”
“Our simulations of future prices continue to point to a low bar for subsequent CTA selling activity, with algos likely to continue selling the red metal even in a flat tape over the coming week.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.