COMEX May 8 Copper Roundup

New York, May 8 news: Copper futures on the Chicago Mercantile Exchange (COMEX) rose on Monday. Exchange inventories fell, supporting copper prices.

As of the close, copper futures rose by 4.65 cents to 5 cents, of which the most actively traded July 2023 copper closed at $3.9295 per pound, up 4.65 cents or 1.20% from the previous trading day.

July copper traded in a range of $3.8765 to $3.9595.

Copper inventories in warehouses registered with the Shanghai Futures Exchange fell to 134,919 tonnes on Friday, the lowest since Jan. 13 and equivalent to more than three days of Chinese demand last year.

A report from a futures company said that due to low inventories, smelter maintenance in May, demand may improve after the May Day holiday, and copper prices have become cheaper in the past few weeks, all providing support for the rise in copper prices. support.

The recent COMEX copper futures contract has risen 1.24% so far this month and 2.96% so far this year, but Monday's closing price was still 6.56% lower than the same period last year and 20.51% 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 June 2023 copper contract on the Shanghai Futures Exchange closed up 880 yuan at 67,030 yuan a tonne on Monday. July bonded copper futures on the Shanghai International Energy Exchange (INE) rose 84 yuan to 59,360 yuan a tonne.

From the perspective of fund dynamics, the position data released by the US Commodity Futures Trading Commission (CFTC) showed that speculative funds sold a net of 35,000 lots in the copper futures market for the second consecutive week last week. As of May 2, 2023, speculative funds held a net short position of 15,667 lots in the COMEX copper futures and options market, an increase of 5,178 lots from the previous week, and a net sell of 30,257 lots in the previous week.

On Monday, the trading volume of COMEX copper futures was 48,339 lots, compared with 71,518 lots in the previous trading day; the volume of short positions was 195,770 lots, compared with 195,592 lots in the previous trading day.