Technically Copper market is under short covering as market has witnessed drop in open interest by 23.17% to settled at 3250 while prices up 1 rupees.
Now MCX Copper is getting support at 781.4 and below same could see a test of 769.7 levels, and resistance is now likely to be seen at 799.9, a move above could see prices testing 806.7.
Copper yesterday settled up by 0.13% at 793.15 amid fears of supply disruption from a mine in the world’s No.2 producer Peru supported the market.
U.S. homebuilding unexpectedly fell in September and permits dropped to a one-year low amid acute shortages of raw materials and labor, strengthening expectations that economic growth slowed sharply in the third quarter.
The dollar languished near the bottom of its recent range, knocked back by weak U.S. factory data and on market wagers of faster normalisation of monetary policy in other countries.
A Peruvian community will block a key mining road used by MMG’s Las Bambas copper mine in protest after failed negotiations with the Andean nation’s government, a community leader told.
LME cash copper was at a record high $1,103.50-a-tonne premium over the three-month contract, compared to $55 just a week earlier, indicating tight nearby inventories.
On-warrant LME copper inventories plunged to their lowest since 1998 of 14,150 tonnes on Friday before rising to 21,050 tonnes, with one entity controlling between 50% and 79% of LME copper warrants , LME data showed.
Meanwhile, freely available stockpiles have shrunk by more than 90% over the last couple of months in LME-monitored warehouses, a trend also seen in Chinese and American inventories.
Trading Ideas:
–Copper trading range for the day is 769.7-806.7.
–Copper prices gained amid fears of supply disruption from a mine in the world’s No.2 producer Peru.
–A Peruvian community will block a key mining road used by MMG’s Las Bambas copper mine in protest after failed negotiations with the Andean nation’s government.
–LME cash copper was at a record high $1,103.50-a-tonne premium over the three-month contract, indicating tight nearby inventories.
Courtesy: Kedia Commodities
Source: Comodity Online
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