Copper nets shorts see growth – TDS
|Top traders in Shanghai continue to liquidate their long positions in Copper seeing their net short position grow Thursday overnight, TDS commodity strategists note.
Selling trigger continues to drift closer to market
“Commodity Trading Advisor (CTA) long positions remain safe, however as momentum eases the selling trigger continues to drift closer to market at $9,385/t. Indeed, our gauge of global commodity demand continues to weaken, while depressed premiums and surging inventories in the Middle Kingdom argue against fundamental tightness.”
“This contrasts with the euphoric positioning in the West that has been driven by the narrative of upcoming greenification demand and large deficits.”
“While the fundamental situation certainly looks promising in the years to come, the lack of evidence supporting current physical tightness has started to see the money manager positioning unwind. With plenty of bloated positions still remaining, the Red Metal remains at risk in the near-term.”
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