Copper........
Copper inventories ticked to 10 year high on Monday reaching 678225
tonnes. This is a cause of worry for the markets which is already
carrying the burden of slack Chinese demand. Three-month copper futures
turned lower on the London Metal Exchange, with losses in Shanghai
shares Tuesday fueling selling, as concerns about China's cash crunch
rattle investors.
LME three month prices of Copper were seen at $
6625 per tonne, compared to $ 6675 per tonne. Indian Copper prices
suffered the same fate as its International counterpart. The prices
declined to Rs 400.8 per kg, down Rs 8. Supports for the contract are at
Rs 395 and 393 per kg.
Last week, COMEX Copper fund managers,
Commitment of traders (CoT) report showed heavy rise in short positions
while there was minor increase of long positions by hedge fund managers.
The total short positions increased by 11209 contracts taking total
short contracts number to 55896 contracts against 44687 contracts in the
previous week.
In US economic news, the Federal Reserve Bank of
Philadelphia said late last week that its manufacturing index rose to
12.5 in June from -5.2 in May, well above expectations for a -2.0
reading.
A separate report showed that U.S. existing home sales
climbed 4.2% to 5.18 million units in May from April's total of 4.97
million, far surpassing market calls for a 0.6% increase. Bank Of Japan
said that Japan's corporate services price index rose by a
seasonally-adjusted 0.3% last month following a -0.3% reading in April.
Source by Commodity Insights
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