Copper Is Likely To Get Underpinned By Chinese PMI

Copper............

Copper prices are likely to get underpinned by Chinese PMI data. The data released last night had shown that official Purchase Manager's Index rose to 50.8 in May compared to 50.6 in the month of April. This reading is also stronger than expectations of 50.1 figure. Metals are expected to open with a positive undertone in India.
Meanwhile, Fund managers has been staying away to take any fresh long positions in the COMEX Copper contracts. The report showed that the short positions were declined but that decline didn't shift to a material increase in long positions.
COMEX Copper fund managers, Commitment of traders report for week ending 28 May 2013 showed decline in the short positions while there was concurrent minor decrease of long positions by hedge fund managers. The total short positions declined by 899 contracts taking total short contracts number to 36038 contracts against 36937 contracts in the previous week.
COT report showed that long contracts decreased by just 728 contracts and were at 27120 contracts from 27848 contracts a week before. Total net short positions therefore moved to 8918 contracts from 6158 contracts on 21 May.
LME Copper settled at $ 7270 per tonne on Friday, against $ 7275 per tonne last week. Most active Copper contract on MCX closed the last week trading at Rs 411.85 per kg, down 1 percent in the week. Resistance for the contract is at Rs 414 per kg. Downtrend can take Copper towards Rs 408 per kg.
Source by Commodity Insights