Copper is unique among other metals because it can establish the state of economic growth in a given country. For example, if the demand for copper is increasing, then the economy is expanding. In fact, the World Bureau of Metal Statistics has cited an 8% increase in copper consumption during 2010 alone—most notably in Asia—and since then, the demand has continued to climb. Because copper is so vital for construction and electric wiring, it is no wonder this precious metal maintains its significance alongside silver and gold in futures investing. Copper futures can be used as a hedging tool for price mitigation. Copper futures also offer advantages like central clearing and transparency of price among traders.
|Copper Contract Specifications|
|Venue||CME Globex, CME ClearPort, Open Outcry (New York)|
|Trading Hours||CME Globex: Sun–Fri 5:00pm–4:15pm CT with a 45-minute break each day beginning at 4:15pm|
|CME ClearPort: Sun–Fri 5:00pm–4:15pm CT with a 45-minute break each day beginning at 4:15pm|
|Open Outcry: Mon–Fri 7:10am-12:00pm CT|
|Contract Size||25,000 pounds|
|Price Quotation||U.S. Cents per pound
Please note: Prices are disseminated in U.S. Dollars and Cents
|Minimum Fluctuation||$0.0005 per pound|
|Termination of Trading||Trading terminates on the third last business day of the delivery month.|
|Listed Contracts||Trading is conducted for delivery during the current calendar month, the next 23 calendar months, and any March, May, July, September, and December falling within a 60-month period beginning with the current month.|
|Settlement Procedure||Daily Copper Futures Settlement Procedure
Final Copper Futures Settlement Procedure
|Delivery Period||Delivery may take place on any business day beginning on the first business day of the delivery month or any subsequent business day of the delivery month, but not later than the last business day of the current delivery month.|
|Trading at Settlement (TAS)||Trading at Settlement is allowed in the active contract month. The active contract months will be March, May, July, September and December. On any given date, TAS transactions will be allowed only in a single contract month. TAS transactions may be executed at the current day’s settlement price or at any valid price increment ten ticks higher or lower than the settlement price.|
|Grade and Quality Specifications||The contract (basis) grade for the Grade 1 copper contract shall be Grade 1 Electrolytic Copper Cathodes (full plate or cut) and shall conform to the specifications (as to chemical and physical requirements) for Grade 1 Electrolytic Copper Cathode as adopted by the American Society for Testing and Materials (B115-00), or its latest revision.|
|Exchange Rules||These contracts are listed with, and subject to, the rules and regulations of COMEX.|
Copper is one of the world’s oldest and most mined commodities, just behind aluminum and iron. Humans have been using copper for more than 10,000 years and its origins can be traced back to Cyprus, Greece and Egypt. Copper is the most popular metal to be used for industrial purposes. It is the best conductor of electricity and is resistant to corrosion. Copper is known to be biostatic, which means that bacteria cannot grow on it. Therefore, copper is used in items like door handles and food surfaces for hygienic purposes. Global copper production has been on the rise since 2011 and the top producer is Chile, followed by Peru and China. China is the top consumer of copper.
Last updated May 2013
Copper News Articles
- Copper futures slide as tapering concerns grow (12/3/2013) - Indications about a growing U.S. economy prompted copper futures to lose value on Tuesday amid speculation that the U.S. Federal Reserve is set to reduce the amount of economy-spurring monetary stimulus measures, according to Bloomberg.
- Copper futures dip after China releases reforms (11/18/2013) - Copper futures were hovering near their lowest value in about 90 days on Monday after the globe's largest consumer of the base metal publicized economic and social reforms for the first time in nearly 30 years late last week, according to Reuters.
- Copper futures fall as concerns grow about China (11/13/2013) - Speculation about the U.S. Federal Reserve tapering monetary stimulus measures earlier than forecast prompted copper futures to drop to their lowest value in 90 days on Wednesday, according to Bloomberg.
- Copper futures edge down amid concerns about tapering stimulus (11/8/2013) - Stronger-than forecast job-creation data released by the U.S. pulled down copper futures on Friday as the industrial metal slumped toward its biggest weekly drop in about three months, according to Bloomberg.
- Copper futures pinched by speculation about tapering sooner than projected (10/31/2013) - Speculation about the globe's second-largest consumer tapering monetary stimulus sooner than projected tugged down copper futures for the first time in seven days on Thursday, according to Bloomberg.
- Copper futures benefit from healthy Chinese GDP data (10/18/2013) - Economic growth in the globe's largest consumer pushed up copper futures on Friday but preoccupations about the extent of that development curbed the reddish metal's upward drive, according to Reuters.
- Copper futures advance after release of strong Chinese data (10/14/2013) - Indications of strong demand by the globe's top user pushed up copper futures on Monday as the base metal achieved its third-straight session of gains as the trade week began, according to Bloomberg.
- Copper futures benefit from optimism about political breakthrough in U.S. (10/10/2013) - Optimism about U.S. political leaders' abilities to hash out an agreement regarding the debt ceiling and fulfill financial obligations prompted copper futures to rise from their lowest value in about 21 days on Thursday, Bloomberg reports.
- Copper futures slip as shutdown imparts bleak prospects (10/3/2013) - Surging preoccupations about stunted economic growth in the globe's second-largest consumer pulled down copper futures on Thursday as the partial government shutdown in the U.S. reached its third day, according to Bloomberg.
- Government shutdown pulls down copper futures (10/2/2013) - Preoccupations about the extent and impact of the U.S. government shutdown pulled down copper futures on Wednesday, according to Bloomberg.
Copper Blog Posts
- Market Spotlight: Copper (8/23/2013) - Copper, one of the oldest and easily mined commodities, is the world's third most widely used metal, after iron and aluminum. Five thousand years ago, people learned to alloy copper with tin, producing bronze and giving rise to a new age.