The copper market barely managed to claw out a fresh higher high for the move in the early action. International copper prices were given a lift last night from speculation of upcoming stimulus action from China. It is also possible that US copper prices will continue to catch an early lift from anticipation of Fed testimony.
The copper market has apparently managed to discount evidence of rising physical copper production from Rio Tinto for the 2nd quarter of 2012 and the copper market has also generally managed to discount evidence of rising Chinese copper production for the month of June and for the 1st 6 months of 2012. In fact, Chinese copper production saw double digit percentage gains on a month over month basis and on a year over year basis.
While copper prices seem to be drafting a measure of support off the hope for something supportive from the Fed early this morning, it is possible that important data from US industrial production and the NAHB could be very influential later in the session despite the overwhelming early focus on the Fed.
Some suggest that copper needs to see positive Industrial Production and or NAHB readings to see nearby futures prices claw back above the $3.50 consolidation high zone. LME copper stocks overnight increased by 1,275 tons to stand at 252,900 tons.
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