Technically Copper market is under fresh buying as market has witnessed gain in open interest by 26.26% to settled at 4573 while prices up 24.1 rupees.
Now MCX Copper is getting support at 741.8 and below same could see a test of 724.4 levels, and resistance is now likely to be seen at 769.3, a move above could see prices testing 779.4.
Copper yesterday settled up by 3.28% at 759.05 as inventories in ShFE warehouses have dropped nearly 80% since May to 50,062 tonnes, and LME stocks were at a near eight-month low of 65,500 tonnes.
The premium of LME cash over the three-month contract jumped to above $50 a tonne this week, indicating tight nearby supplies. The Yangshan copper premium hit $140 a tonne, its highest since 2014, indicating strong demand to import the metal into China.
China’s copper imports in September rose from the previous month, customs data showed, snapping a run of five straight monthly declines as shipments previously held up by coronavirus pandemic curbs belatedly arrived in the country.
Arrivals of unwrought copper and products into top copper consumer China were 406,016 tonnes in September, the General Administration of Customs said.
Fed’s Bullard says the bond purchases should be tapered quickly in case rate hikes are needed when inflation becomes a larger problem, heightening market expectations of tapering in November.
The Fed Vice Chairman Richard Clarida said that the conditions required for the reduction of debt purchase were basically met, which further consolidated the market expectations of the Fed’s purchase tapering in November.
–Copper trading range for the day is 724.4-779.4.
–Copper prices rose as inventories in ShFE warehouses have dropped nearly 80% since May, and LME stocks were at a near eight-month low.
–China Sept unwrought copper imports at 406,016 tonnes – customs.
–The premium of LME cash over the three-month contract jumped to above $50 a tonne this week, indicating tight nearby supplies.
Courtesy: Kedia Commodities
Source: Comodity Online