Sunday 3 March 2013

New Day New Week Can Bring Respite From Selling In MCX Copper

Copper.....

Metal traders will be hoping that the new session of the new week will bring some respite from selling in Monday. Copper can expect some bounce in todays session as the LME forwards are trading in green. LME three month forwards were trading at $ 7697 per tonne, up $ 32 per tonne. Inventories maintained by LME warehouses have appreciated sharply. LME warehouse inventories have increased by 43% to 458775 tonnes by 1 March 2013 from the beginning of this year.

Markets are gyrating on the fact that Bank of Japan governor nominee Haruhiko Kuroda has said that he would do whatever it takes to bring the country back from deflation. China on the contrary is expected to resort to tighter monetary policy to curb property values. Dollar remained moving ahead of the Euro last week and settled at 1.3019 against 1.3062 at the beginning of the week.
Managed money funds reportedly cut their long positions in Copper for week ending 26 Feb 2013. COMEX Copper contracts, Commitment of traders report showed that fund managers slashed 12340 long contracts taking the total towards 25839 contracts, on 26 February 2013. Meanwhile, short positions were increased by 6238 contracts to 33004. Total net long positions therefore moved down by 37% to 7165 contracts. Inventories maintained by LME warehouses have appreciated sharply.
MCX Copper closed at Rs 431 per kg on Saturday last week. A move above Rs 432 per kg will bring some buying back in the metal. So far, supports of Rs 428 and Rs 426 are active for the metal. Any breach of these levels on the lower side will bring further bleeding.
Source by Commodity Insights

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