Copper futures got off to a positive start on Thursday morning, with contracts for September delivery rising 2.45 cents to $3.0395 per pound on the Comex in New York just after 9a.m. EST.
The metal was aided by news that May industrial production rose in Germany by 2.6 percent rather than the projected 1 percent.
Overall, the picture for copper is mixed – it hasn’t done particularly well this year, and signs of further economic weakness could cause more drops in the price. Good corporate earnings reports, on the other hand, could give the commodity a boost as traders move to lock in relatively low prices before consumption begins to increase.
Another key market is China, which imports hundreds of thousands of tons of copper each month to aid in construction and manufacturing.
Many analysts inside and outside the country believe it is currently experiencing its own property bubble, and the government has begun taking steps to curb growth and development in the real estate industry.
If China sees real reverses in building and construction, copper prices may plummet as the country consumes less metal.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
