LME
three month Copper prices settled at $ 7099.5 per tonne, down 1.3
percent in the week.After a series of bets taking Copper to a multi year
low, prices jumped in last few days of the week on account of bets that
World Central banks will infuse liquidity in system to recover growth.
Earlier in the week, major commodities were rattled after the weakness
in PMI numbers of China. The HSBC PMI numbers for the month of April
2013 showed a reading of 50.5 compared to 51.6 in the month of March.
China has been facing series of negative feedbacks on its economy this
month. The slowdown in imports of metals followed by downward revision of GDP numbers by IMF and now declining PMI numbers is all set to derail the trading sentiments of Base metals. Meanwhile, Goldman Sachs said that copper 12 month outlook was changed to $ 7000 per tonne from $ 8000 per tonne. Managed money funds further eased their bearish bets on Copper and entered into some fresh longs indicating that the heavy carnage in metals can see some halt.
COT report showed that long contracts were increased by 1338 contracts and were at 26087 contracts compared to 24749 a week before. Total net short positions therefore moved down by 16.5 percent to 27504 contracts in 16 April 2013 from 32942 contracts on 9 April 2013.
Source by Commodity Insights
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