Comex copper prices recovered in US morning trading on Monday September 11 after hitting a two-week low late last week amid technical selling and weaker-than-expected Chinese data.
Copper for December delivery on the Comex division of the New York Mercantile Exchange rose $2.70 or 0.9% to $3.0685 per lb.
The red metal had been steadily climbing since mid-August, but Friday’s sell-off sunk prices to a two-week low. However, the move is not expected to start a trend because the fundamental outlook solid for now.
“We do not think that Friday’s sell-off was fundamentally driven; rather, it was the result of a stretched positioning where leveraged market players were forced to close out their positions,” Metal Bulletin analyst Boris Mikanikrezai said. “But we expect buy-on-the-dips to re-emerge amid tighter present fundamentals.”
Copper’s recovery was capped slightly by news of softer-than-expected import data from China.
“[China’s] imports of copper products in August hit 390,000 [tonnes]. While this was up 11.5% year-on-year, the fact it was unchanged for a third month seemed to disappoint the market,” ANZ Research said.
“China’s power and infrastructure sectors, which account for approximately 4 6% and 9 .4% of copper end-use, respectively, will keep demand growth elevated in the largest consumer of refined copper. Additionally, over the longer term, rising electric vehicle production and renewable energy systems will bolster copper demand,” BMI Research said.
In the precious metals space, Comex gold for December settlement dipped $11.50 or 0.9% to $1,339.70 per oz.
Currency moves and data releases
- The dollar index remains week despite climbing 0.40% to 91.70.
- In other commodities, the Texas light sweet crude oil spot price was down 0.80% to $47.09 per barrel.
- Data out already today showed Japan’s core machinery orders climb 8%, better than the 4.2% rise expected; M2 money supply climbed 4%; tertiary industry orders climbed 0.1%; and preliminary machine tool orders climbed 36%.
- It is a quiet start to the week with few major data releases on the calendar, but the USA’s inflation reading for August and Chinese industrial production data will be out later this week.
The post LIVE FUTURES REPORT 11/09: Comex copper price recovers in opening session appeared first on The Bullion Desk.
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Source: Bullion Desk News
