COMEX June 5 Copper Roundup

New York, June 5 news: Copper futures on the Chicago Mercantile Exchange (COMEX) rose more than 1 percent on Monday, the third consecutive day of gains.

As of the close, copper futures rose by 3.35 cents to 4.05 cents, of which the most actively traded July 2023 copper closed at $3.768 per pound, up 4.05 cents or 1.09% from the previous trading day.

July copper traded in a range of $3.686 to $3.7845.

Copper futures rose 13.15 cents or 3.62% in the past three trading days, reflecting the approval of the debt ceiling agreement by the US Congress, coupled with Caixin/S&P PMI data showing that Chinese factory activity turned to growth, which boosted market sentiment better.

The U.S. dollar fell on Monday, with ICE's June U.S. dollar index at 103.936, down 0.02% from the previous session and down 0.30% so far this month.

The Institute for Supply Management (ISM) said on Monday that its non-manufacturing PMI fell to 50.3 in May from 51.9 in April. Growth in the PMI slowed in May, raising the risk of a recession, the ISM said. It also strengthened market expectations that the Federal Reserve may pause interest rate hikes next week. Following the ISM data, market expectations for a rate hike by the Fed at its June 14 policy meeting fell to 22.9 percent.

The near-term contract of COMEX copper futures has fallen 1.13% so far this year. The closing price on Monday was 15.25% lower than the same period last year, and 23.67% lower than the historical peak reached in March 2022. COMEX copper futures fell by 14.6% in 2022, mainly because the outlook for global economic growth is worrying. High inflation prompted European and American central banks to actively raise interest rates to curb inflation, exacerbating the risk of economic recession. In contrast, copper has recorded two consecutive years of gains of 25% in 2020 and 2021, as the green transition of the global economy and electrification help boost additional demand for the metal, which is widely used in the power and construction industries, while copper mines face challenges. Disruptions such as underinvestment and production disruptions.

The July 2023 copper contract on the Shanghai Futures Exchange closed down 140 yuan at 65,770 yuan a tonne on Monday. Bonded copper futures for August delivery on the Shanghai International Energy Exchange (INE) fell 80 yuan to 58,790 yuan a tonne.

From the perspective of fund dynamics, the position data released by the US Commodity Futures Trading Commission (CFTC) shows that as of May 30, speculative funds held 23,012 net short positions in the COMEX copper futures and options market, an increase of 6,574 from the previous week Hands, a net sell of 6,183 hands last week.

On Monday, the trading volume of COMEX copper futures was 96,388 lots, compared with 81,508 lots in the previous trading day; the empty position was 228,044 lots, compared with 218,760 lots in the previous trading day.