December copper has traded lower this morning and has continued to extend this pullback into this morning's session. For the most part, copper prices have been widely seen to have found their main source of recent support from stronger equity markets on both sides of the Atlantic. In addition, this week's pullback in the Dollar may be a clear sign of the risk-on mentality holding sway with many commodity markets. While December copper was able to reach new ground for this month's rally, developments in China may play a longer term role in sustaining the up-move. There were reports after the close yesterday that Chinese copper stocks at the end of 2010 were much higher than originally forecast. In addition, the Chinese Trade surplus during September was 14.51 billion Dollars, a smaller surplus than projections and may be an early sign of weaker Chinese copper demand through the end of this year.
Join the Discussion