Reduced inventories of copper demonstrate demand for the industrial metal is increasing, according to Bloomberg.
Enthusiasm among traders of copper is as high now as it was in October, according to the majority of analysts polled by Bloomberg. Of 28 analysts, 16 anticipate the reddish metal will gain in value next week. Since March, global stockpiles of the reddish metal in London, Shanghai and New York have fallen 22 percent since this past March, touching the lowest level since October 2009.
"Reported inventories have been declining very aggressively, and the indication suggests that the market is still tight," analyst Nikos Kavalis with Royal Bank of Scotland Group in London told Bloomberg. "Copper is going to have decent, if unspectacular, growth rates. Supply is still constrained."
At 1:50 p.m. on Friday, copper futures climbed 1.54 percent, a 5.25 cent rise to $3.468 per pound.
Dow Jones Newswires reports Friday's bullish performance marks the fourth consecutive trading session of gains for the reddish metal. The strengthening U.S. economy is projected to continue supporting demand for the industrial metal, which is sensitive to economic data.
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.
