Copper Futures Rally on Higher Equities and Inventory Draws

Strategic Insights -

Copper futures surged on Monday, with May copper rising nearly 5% to settle at $1.7470 a pound on the Comex division of the New York Mercantile Exchange. The rally was fueled by higher equities, a lower dollar, and ongoing inventory draws. Market analysts attribute the rise to fund buying and robust Chinese copper imports, which have pushed prices higher over the last few weeks.

Key Takeaways:

  • Copper futures rallied nearly 5% on Monday, with May copper settling at $1.7470 a pound on the Comex division of the New York Mercantile Exchange.
  • The rally was fueled by higher equities, a lower dollar, and ongoing inventory draws.
  • Pat Donnelly, senior broker with Peak Trading Group, attributed the rise to fund buying and the equities market.
  • Edward Meir, MF Global analyst, noted that declines in LME stocks and robust Chinese copper imports have been instrumental in pushing prices higher over the last few weeks.
  • Inventory draws have been significant, with inventories falling by 50,000 tons over the last few weeks.
  • Comex inventory data was unchanged at 44,441 short tons, while LME stocks fell 2,775 metric tons to 494,850.

Statistics:

  • May copper rose 8.25 cents, or nearly 5%, to settle at $1.7470 a pound.
  • Inventory draws have reduced LME stocks by 50,000 tons over the last few weeks.
  • The ICE Futures U.S. dollar index fell by more than 0.76%.
  • The Dow Jones Industrial Average rose by 144.88 points.

Sources:

  • Dow Jones Commodities News via Comtex
  • Peak Trading Group
  • MF Global
  • Comex (New York Mercantile Exchange)
  • LME (London Metal Exchange)
  • Dow Jones Newswires