Technically Copper market is under fresh buying as market has witnessed gain in open interest by 40.43% to settled at 3553 while prices up 0.8 rupees.
Now MCX Copper is getting support at 709.6 and below same could see a test of 704.2 levels, and resistance is now likely to be seen at 718.8, a move above could see prices testing 722.6.
Copper yesterday settled up by 0.11% at 714.9 as market concerns eased about the default of Evergrande. The U.S. Federal Reserve said it would begin tapering its stimulus programme as soon as November.
The Fed said it would likely begin reducing its monthly bond purchases as soon as November and signaled interest rate increases may follow more quickly than expected.
The global world refined copper market showed a 90,000 tonnes deficit in June, compared with a 4,000 tonnes surplus in May, the International Copper Study Group (ICSG) said in its latest monthly bulletin.
For the first 6 months of the year, the market was in a 2,000 tonnes deficit compared with a 67,000 tonnes surplus in the same period a year earlier, the ICSG said. The People’s Bank of China injected a total CNY 120 billion of reverse repos to maintain liquidity in the banking system on September 23rd, 2021.
The injection comes at a time when China’s second largest private property developer Evergrande faced a Thursday deadline to pay interest on one of its dollar bonds. The amount included CNY 60 billion of seven-day reverse repos at an interest rate of 2.2 percent, and CNY 60 billion of 14-day reverse repos at an interest rate of 2.35 percent.
Trading Ideas:
–Copper trading range for the day is 704.2-722.6.
–Copper prices gained as market concerns eased about the default of Evergrande.
–Copper market in 90,000 tonnes deficit in Jun 2021 – ICSG.
–PBoC Injects CNY 120 Billion into Market.
Courtesy: Kedia Commodities
Source: Comodity Online
