Copper Moves Higher As Dollar Eases Against The Euro

Copper......

Copper has moved higher on Tuesday supported by rise of Euro and some bottom fishing after a sharp correction. The three month prices of LME Copper were trading at $ 7370 per tonne in early Asian trades compared to $ 7296 per tonne on Monday. Dollar moved lower against the Euro last night and was at 1.2884 against when last seen. The shutdown of production in Freeport Grasberg mine after the fatal incident has caused little impact on the red metal which declined by $ 54 per tonne to $ 7296 per tonne on Monday. Last week, Commitment of traders report for week ending 14 May 2013 showed decline in the short positions while there was concurrent minor increase of long positions by hedge fund managers. The total short positions declined by 3064 contracts taking total short contracts number to 40667 contracts from 43731 contracts in the previous week. Markets are keenly awaiting hints from Federal Reserve minutes regarding central bank monetary policy. Copper prices have gained last week on the back of news that Federal Reserve will end its monetary policy stimulus of $ 85 billion per month. Indian Copper futures moved up smartly by Rs 3.5 or 0.9 percent to end at Rs 409 per kg. The prices tested a low of Rs 400 before recovering. Further appreciation can take the metal towards Rs 411 and 413 per kg today. Among other metals, Nickel three month prices were at $ 15070 per tonne, up $ 160 per tonne. MCX Nickel closed at Rs 828 per kg on Monday, up 1.5 percent. The prices tested a high of Rs 831 per kg and a low of Rs 810.6 per kg. Nickel markets are estimated to be in surplus of 90000 tonnes in 2013. World Nickel markets were in surplus of 110000 tonnes in 2012. Source by Commodity Insights