New York, September 25: Copper futures on the Chicago Mercantile Exchange (COMEX) fell for the third consecutive day on Monday, mainly because the market was worried that the Federal Reserve's hawkish monetary policy would lead to long-term high interest rates, and the strength of the U.S. dollar put pressure on copper futures.
As of the close, copper futures fell by 1.6 cents to 2.6 cents. Among them, the most actively traded December 2023 copper futures closed at $3.67/lb, down 2.60 cents or 0.70% from the previous trading day, hitting a record of 9 The lowest closing price since March 8.
December copper futures traded in a trading range of $3.649 to $3.7055.
Since the Federal Reserve issued a hawkish monetary policy statement last week, the market has worried that U.S. interest rates may remain at higher levels for longer, curbing economic growth and demand for goods. Expectations of interest rate hikes also boosted the dollar.
The U.S. dollar index rose 0.4% on Monday to 105.690, with the U.S. dollar up 2.4% so far this month.
With U.S. economic data released on Monday being lackluster, investors this week will focus on a few data points on the housing market, as well as the final readings of second-quarter gross domestic product and personal consumption expenditures.
The market will also pay attention to the economic data released by China this week. Goldman Sachs analysts said China's manufacturing industry will expand in September, with the purchasing manufacturing index expected to rise above 50 for the first time since March.
The recent COMEX copper futures contract has fallen 3.26% so far this month and 4.10% so far this year. Monday's closing price increased 10.14% compared with the same period last year. COMEX copper futures fell 14.6% in 2022, mainly because the global economic growth outlook is worrying. High inflation has prompted European and American central banks to actively raise interest rates to curb inflation, exacerbating the risk of economic recession. By comparison, copper in 2020 and 2021 has recorded gains of 25% for two consecutive years. The green transformation of the global economy and electrification have helped boost additional demand for this metal widely used in the power and construction industries, while copper mines are facing Disruptions such as underinvestment and production disruptions.
From the perspective of fund dynamics, position data released by the U.S. Commodity Futures Trading Commission (CFTC) shows that speculative funds have increased their net short positions in the U.S. copper futures market. As of September 19, speculative funds held a net short position of 5,836 lots in the COMEX copper futures and options market, an increase of 2,068 lots from a week ago. For comparison, there were net sales of 7,672 lots last week.
On Monday, the Shanghai Futures Exchange's November 2023 copper contract closed down 110 yuan at 67,870 yuan per ton. Bonded copper futures for January on the Shanghai International Energy Trading Center (INE) fell 120 yuan to 60,270 yuan per ton.
In the registered warehouse of the Shanghai Futures Exchange, copper inventory on Friday (September 22) was 54,165 tons, 10,9811 tons less than 65,146 tons a week ago, ending the previous four consecutive weeks of growth, compared with the end of February The peak of 252,455 tons was 78.5% lower.
On Monday, the trading volume of COMEX copper futures was 64,714 lots, compared with 69,082 lots on the previous trading day; the open volume was 211,593 lots, compared with 211,153 lots on the previous trading day.
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