Given the broad-based deflationary selling wave yesterday and follow through selling in Asian and European equity markets overnight, it wasn't surprising to see July copper prices initially forge a lower low on the charts. Certainly a minor bounce in US equities has prompted some short covering, but in the face of softer than expected German business sentiment readings overnight, the case for more global slowing appears to have remained in place. Since the US economic report slate today doesn't appear to have the capacity to alter slowing views, the bear camp probably feels like they have maintained control. On the other hand, Copper the last COT report pegged the nonreportable and non-commercial combined positioning to be net short 24,401 contracts, and with the July copper contract to the overnight lows sitting another 9 cents a pound below the level where the COT report was measured, it is possible that copper is currently venturing toward the record spec short positioning that was seen on February 17th of 2009. LME copper stocks overnight increased by 825 tons to stand at 252,975 metric tons.
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