Inventories of Copper Are Now At 10 Years High

Copper........

Copper inventories ticked to 10 year high on Monday reaching 678225 tonnes. This is a cause of worry for the markets which is already carrying the burden of slack Chinese demand. Three-month copper futures turned lower on the London Metal Exchange, with losses in Shanghai shares Tuesday fueling selling, as concerns about China's cash crunch rattle investors.
LME three month prices of Copper were seen at $ 6625 per tonne, compared to $ 6675 per tonne. Indian Copper prices suffered the same fate as its International counterpart. The prices declined to Rs 400.8 per kg, down Rs 8. Supports for the contract are at Rs 395 and 393 per kg.
Last week, COMEX Copper fund managers, Commitment of traders (CoT) report showed heavy rise in short positions while there was minor increase of long positions by hedge fund managers. The total short positions increased by 11209 contracts taking total short contracts number to 55896 contracts against 44687 contracts in the previous week.
In US economic news, the Federal Reserve Bank of Philadelphia said late last week that its manufacturing index rose to 12.5 in June from -5.2 in May, well above expectations for a -2.0 reading.
A separate report showed that U.S. existing home sales climbed 4.2% to 5.18 million units in May from April's total of 4.97 million, far surpassing market calls for a 0.6% increase. Bank Of Japan said that Japan's corporate services price index rose by a seasonally-adjusted 0.3% last month following a -0.3% reading in April.
Source by Commodity Insights