MCX Copper futures are hovering just under Rs 400 per kg, consolidating amid steady cues from global markets. The commodity has been in a good form off late, rising in tune with the global equities as cheap money supply from global central bankers boosted the sentiments. The supportive economic data from Germany yesterday and China today also kept it well bid today. The COMEX Copper futures are quoting at $3.3220, up more than half a percent after hitting a three-week high yesterday.
China's exports and imports edged up more than expected in April from a year earlier, possibly easing some of the concerns about weakness in the recovery of the world's second-largest economy, though doubts remained over the strength of real demand and the accuracy of the figures. China's exports rose 14.7% in April, while imports grew 16.8%, leaving the country with a trade surplus of $US18.16 billion for the month, the Customs Administration said on Wednesday. From a month earlier, exports edged up 2.7% while imports fell 7.7%.
German Bundesbank said yesterday that the country's factory orders jumped by a seasonally adjusted 2.2% in March, confounding expectations for a 0.5% decline. Year-over-year, German factory orders dropped at an annualized rate of 0.4% in March, compared to expectations for a 2.9% decline, after falling at a rate of 0.2% in February. This data was good from the point of view of copper, which was in a good mood anyways on an upbeat undertone in global equities.
LME Copper inventories slipped by 4100 tonnes to 604600 tonnes yesterday extending the retreat though the inventories remain at a very high level. With COMEX Copper stabilizing just under its recent highs, MCX Copper futures also continue to witness steady buying.
However, it would be interesting to see if the metal breaks above Rs 400 per kg levels. Prices had failed to hold on above Rs 399 in both the previous sessions and currently trade at Rs 398.40, up Rs 1.55 per kg or 0.50% with a 10.50% increase in open interest. This could tantamount to build up of some shorts in intraday moves and might see some unwinding later on in the session.
China's exports and imports edged up more than expected in April from a year earlier, possibly easing some of the concerns about weakness in the recovery of the world's second-largest economy, though doubts remained over the strength of real demand and the accuracy of the figures. China's exports rose 14.7% in April, while imports grew 16.8%, leaving the country with a trade surplus of $US18.16 billion for the month, the Customs Administration said on Wednesday. From a month earlier, exports edged up 2.7% while imports fell 7.7%.
German Bundesbank said yesterday that the country's factory orders jumped by a seasonally adjusted 2.2% in March, confounding expectations for a 0.5% decline. Year-over-year, German factory orders dropped at an annualized rate of 0.4% in March, compared to expectations for a 2.9% decline, after falling at a rate of 0.2% in February. This data was good from the point of view of copper, which was in a good mood anyways on an upbeat undertone in global equities.
LME Copper inventories slipped by 4100 tonnes to 604600 tonnes yesterday extending the retreat though the inventories remain at a very high level. With COMEX Copper stabilizing just under its recent highs, MCX Copper futures also continue to witness steady buying.
However, it would be interesting to see if the metal breaks above Rs 400 per kg levels. Prices had failed to hold on above Rs 399 in both the previous sessions and currently trade at Rs 398.40, up Rs 1.55 per kg or 0.50% with a 10.50% increase in open interest. This could tantamount to build up of some shorts in intraday moves and might see some unwinding later on in the session.
Source by Commodity Insights
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