The copper market saw some positive action from China overnight as the trade sensed the prospect of renewed demand in the instant aftermath of the Greek elections. However, that partial risk-on vibe has moderated as it remains unclear if the newly elected officials in Greece can actually form a government. Copper seems to be looking ahead to the prospect of upcoming easing from either the US Fed and perhaps some players are also anticipating some form of coordinated easing action into the G20 meeting. The bull camp might see some technical assistance to start today as July copper prices temporarily reached up to the highest levels since May 29th. The copper market might see some reaction to a US NAHB housing Index result later this morning, as a weak reading might temporarily knock copper prices down, but eventually that news might serve to rekindle US easing hopes. US traders should be aware of potentially critical Chinese home price release overnight, as that news could rekindle fears of slowing in China for the Tuesday US trade action.
While the most recent COT positioning reports continued to show the non-commercial and non-reportable combined positioning to be in the vicinity of the record short reading, the copper market has probably moderated a large portion of that short with the rally of the last 6 sessions. The Commitments of Traders Futures and Options report as of June 12th for Copper showed Non-Commercial traders were net short 14,958 contracts, a decrease of 1,679 contracts. The Commercial traders were net long 24,401 contracts, a decrease of 3,226 contracts. The Non-reportable traders were net short 9,443 contracts, a decrease of 1,547 contracts. Non-Commercial and Non-reportable combined traders held a net short position of 24,401 contracts. This represents a decrease of 3,226 contracts in the net short position held by these traders. LME copper stocks overnight were down 325 tons to stand at 249,125 metric tons.