COMEX October 17 Copper Roundup

New York, October 17: Copper futures on the Chicago Mercantile Exchange (COMEX) fell slightly on Tuesday and were at their lowest point in two weeks.

As of the close, copper futures fell by 0.2 cents to 1.15 cents. Among them, the most actively traded December 2023 copper futures fell by 0.35 cents or 0.10% to close at $3.5785/lb, setting a new high since October 5. The lowest closing price.

December copper futures traded in a trading range of $3.5315 to $3.593.

Copper has fallen on five of the past six trading days.

On Tuesday, the U.S. dollar exchange rate index first declined and then rose, closing slightly higher. A stronger dollar makes dollar-priced metals more expensive for buyers holding other currencies, curbing prices and trade.

ICE's December U.S. dollar exchange rate index closed at 106.046 points, up 0.01 points from Monday.

China will release monthly retail sales and industrial production reports later this week, which traders hope will provide insights into Chinese consumption.

Traders will also pay attention to Federal Reserve Chairman Powell's speech on Thursday, hoping to find more clues about the Federal Reserve's interest rate policy. The FedWatch tool shows traders see a greater than 44% chance of a rate hike by the Fed in December, and expect the Fed to keep interest rates above 5% until July next year.

The recent COMEX copper futures contract has fallen 4.04% so far this month and 6.04% so far this year. The closing price on Tuesday was 4.96% higher than the same period last year, but it was still 27.46% lower than the historical peak hit on March 4, 2022.

Copper fell 14.6% in 2022 as global economic growth prospects are 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.

On Tuesday, the Shanghai Futures Exchange's November 2023 copper contract closed down 880 yuan at 66,900 yuan per ton. Bonded copper futures for December on the Shanghai International Energy Trading Center (INE) fell 830 yuan to 59,240 yuan per ton.

On Tuesday, the trading volume of COMEX copper futures was 96,088 lots, compared with 68,857 lots on the previous trading day; the short volume was 218,744 lots, compared with 215,863 lots on the previous trading day.