Large base metals speculators trimmed their net long positions in the Copper futures markets further last week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday. The non-commercial futures contracts of Copper futures, traded by large speculators and hedge funds, totaled a net position of 53578 net contracts in the data reported through October 5th 2020. This was a weekly slide of 484 net contracts. The net longs continue to drop from near two and half year high and are at a five week low now.
Shanghai base metals, except zinc, cruised higher on Tuesday morning as investors look to Chinese trade figures for September set to release today. Meanwhile, their counterparts on the LME fell across the board as optimism over the possibility of a COVID-19 relief bill was curbed by concern over the pandemic. Copper touched a three-week high on Monday as demand from top consumer China and the threat of strikes by miners in Chile pushed prices closer to 27-month highs reached in September, though a strengthening yuan limited gains. China will invest close to $900 billion over the next five years to develop the country’s copper-intensive power grids, state media reported. The union at Chile’s Escondida mine rejected BHP’s final offer in contract negotiations, but the miner said it would meet the union again in an effort to avoid strike action.
TREND : WEAK BEARISH / SIDEWAYS
Time : 13/10/2020
Pivot : 3.0513
Technical View : LONG ABOVE 3.0615
Target : 3.0717, 3.1022, 3.1209
Technical View : SHORT BELOW 3.0349
Target : 3.0185, 3.0008, 2.9693