Technically Copper market is under long liquidation as market has witnessed drop in open interest by 3.02% to settled at 4624 while prices down 4.75 rupees.
Now MCX Copper is getting support at 736.8 and below same could see a test of 732.1 levels, and resistance is now likely to be seen at 746.9, a move above could see prices testing 752.3.
Copper yesterday settled down by 0.64% at 741.3 weighed down by a weaker iron ore market and caution ahead of an interest rate meeting in the United States.
The most-traded Dalian iron ore futures tumbled 10% to near a one-year low on increasing supplies and sluggish demand, partly from a poor real estate market hurt by a debt crisis at property giant China Evergrande Group.
Prices of the metal moved in tight range and thin volume as market participants were waiting for more a U.S. Federal Reserve meeting on interest rates, which could impact economic growth and liquidity in the financial markets.
Top copper miner Codelco offered Chinese customers annual copper supply for 2022 at a premium of $105 a tonne, up 19.3% from $88 a tonne this year, extending a trend of higher premiums on strong copper demand and very low inventories.
Global copper smelting activity extended its recovery in October while nickel production edged higher despite sharp falls in China due to a power crunch, data from satellite surveillance showed. Copper smelting in China is ramping up after seasonal maintenance in the third quarter.
–Copper trading range for the day is 732.1-752.3.
–Copper prices fell weighed down by a weaker iron ore market and caution ahead of an interest rate meeting in the United States.
–Global copper smelting extends recovery in October.
–Codelco offered Chinese customers annual copper supply for 2022 at a premium of $105 a tonne.
Courtesy: Kedia Commodities
Source: Comodity Online