Copper is under selling pressure – TDS
|Red Metal is under selling pressure influenced by price action in the base metal complex, TDS Senior Commodity Strategist Ryan McKay notes.
China hoards Copper inventories
“Price action in the base metal complex continues to stave off Commodity Trading Advisor (CTA) selling pressure in Copper, however the higher selling trigger, now at $9,422/t, is becoming more of an entrenched risk for the Red Metal.”
“With our gauge of global commodity demand continuing to weaken, while depressed premiums and surging inventories in the Middle Kingdom argue against fundamental tightness, top traders in Shanghai Futures Exchange (SHFE) have taken on a net short position.”
“While the fundamental situation certainly looks promising in the years to come, the lack of evidence supporting current physical tightness can continue to see these money manager positions unwind.”
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.