Home Forex News Copper Speculative Longs Surge To Two And Half Year High.

Copper Speculative Longs Surge To Two And Half Year High.

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Large base metals speculators increased 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 55750 net contracts in the data reported through September 7th 2020. This was a weekly jump of 2634 net contracts from the previous week. The net longs have soared to near two and half year high now.

Shanghai base metals were mostly higher today morning, while their counterparts on the LME set for a mixed start, as investors await the US Federal Reserve’s policy meeting on September 15-16. Stocks of copper in LME-approved warehouses, at 74,875 tonnes, are at their lowest since 2005, when the commodity price bull run took off, triggered by accelerating Chinese demand. Confidence in Chinese demand was reinforced by Chinese banks extending more new loans in August than expected, while broad credit growth quickened. Further clues on the strength of Chinese demand will come from August industrial production and urban investment data due on Tuesday. However, escalating US-China and China-India tensions deepened concerns among investors, which pressure copper prices. Copper prices are likely to fluctuate in rangebound in the short term.

TREND : BULLISH

Time                                      :           15/09/2020

Pivot                                      :           3.0467

Technical View                     :             LONG ABOVE 3.0644

Target                                   :            3.0821, 3.0995, 3.1321

Technical View                     :             SHORT BELOW 3.0374

Target                                   :            3.0281, 2.9965, 2.9781

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