 |
|
|
|
| Commodity News |
| HeadLine : |
Amid copper market mayhem, funds head for the exit dooor |
| Date : |
Mar 24 2020 |
|
Copper and the other base metals pack traded on the London Metal Exchange (LME) have belatedly realised that coronavirus is no longer just a Chinese but a global story. LME three-month metal bounced on Friday but was back under the cosh first thing Monday morning, trading down to $4,461 before recovering to a current $4,600 in continued whiplash conditions. Much of the selling pressure is coming out of China. The Shanghai Futures Exchange copper contract went limit-down on Monday, just as it had several days last week. With trading temporarily halted to cool the market, the selling pressure spills over to the London and CME copper markets. Even before last week’s price plunge, non-Chinese funds were heading for the exit door, closing both long and short positions on the CME copper contract amid slumping open interest. That net short position peaked at 58,557 contracts in the second week of February, since when it has fallen to 41,343 contracts. Funds have slashed outright long positions, which is hardly surprising given both the price action and the gathering demand shock to copper.
Source : Investing
|
|
|
News Archives:
|
|
|
|
|