The big copper short is back as macro fears return | Metals Mine

  • The big copper short is back as macro fears return

    From uk.reuters.com

    The trade war trade has returned with a vengeance as copper and other industrial metals come under sustained fund selling pressure. On the London Metal Exchange (LME) three-month copper fell 11% from $6,443 a tonne at the start of May to a June 7 low of $5,740, its weakest price since the start of January. It has clawed its way back to $5,920 but with bearish funds still massing on the short side it remains to be seen whether this is anything other than a pause for collective breath. Current market dynamics are a rerun of the price weakness in the third quarter of last year, with investors again focused on a ... (full story)

Comment Options
EventsTrader
Jun 11, 2019 1:08pm
Permalink
This article is making copper sound bearish. Below are excerpts I found most interesting, most important.

Quote
Current market dynamics are a rerun of the price weakness in the third quarter of last year, with investors again focused on a deteriorating macroeconomic picture and the knock-on effect on metals demand.

Quote
Copper’s price slide has been accompanied by, and in part driven by, a dramatic increase in short positioning by money managers on the CME’s high-grade copper contract.

Quote
This mass bear positioning is being mirrored in the London market. LME broker Marex Spectron estimates the net speculative short grew to 12% of open interest last week, the largest collective bear bet since September last year.

Quote
It’s no coincidence that funds have turned negative on copper as hopes for a breakthrough in trade talks between the United States and Chile are fading.

Quote
“The vast bulk of clients” are expecting relations between the two countries to get worse before they get better, “with bearish implications for global growth and industrial metals prices”, according to Citi analysts

Quote
The broad takeaway is that China is still struggling to reinvigorate its manufacturing sector. Stimulus is again flowing through the economy, but this time it’s proving to be distinctly metals-lite.
Reply
bigtx
Jun 11, 2019 4:37pm
Permalink
The volatility is amazing in the copper markets. Too volatile for my blood! I dig it, but I don't have the ability to trade it just yet.
Reply

  • Related Stories

There are no posts to display for these settings.
  • Story Stats