Copper Skeptical, China Industrial Production Data Awaited

Copper......

LME three month prices of Copper were marginally higher ahead of the release of Chinese industrial production data. Any negative news from the Chinese industry can play havoc in the recent recovery of Copper and other metals. The only worry for the markets is the output growth of metals. Copper production is expected to rise by 8 percent. Oversupply burden has chopped Copper to 18 month lows last month. LME Copper was trading at $ 7377 per tonne, against $ 7376 per tonne last week. Most active Copper contract on MCX closed the last week trading at Rs 410.8 per kg, up 3.5 percent in the week. Further uptrend can take Copper towards Rs 413 per kg in the upcoming trading sessions. Supports for the contract are at Rs 408 and 406 per kg. Last week, COMEX Copper fund managers, Commitment of traders report for week ending 7 May 2013 showed decline in the short positions while there was simultaneous minor liquidation of long positions by hedge fund managers. The total short positions declined by 7402 contracts taking total short contracts number to 43731 contracts from 51133 contracts in the previous week. COT report showed that long contracts decreased by 768 contracts and were at 26935 contracts from 27703 contracts a week before. Total net short positions therefore moved to 16796 contracts from 23430 contracts. LME Copper inventories closed at 604250 tonnes against 604600 tonnes at the beginning of the week. Source by Commodity Insights