A team of investigators is probing whether companies at the Qingdao Port in China counted the same batches more than once when offering the industrial metal as collateral. Thus far this week, copper futures have fallen about 2.5 percent, marking its worst week since the middle of March.
“Worries that the slowdown in demand from Chinese financing deals after recent inventory fears in Qingdao Port are still the driver here,” states a Friday report authored by head of global metal sales Steven Scacalossi with TD Securities in Toronto, according to Bloomberg. “Momentum sellers are joining the fray.”
At 10:33 a.m. on Friday, copper futures dropped 1.39 percent, a 0.043-cent dip to $3.0475 per pound.
Reuters reports those losses were tempered by a strong hiring record in the U.S. last month. Last month’s healthy data released by the U.S. Department of Labor indicates the nation has recovered from the harsh winter.
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.
Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.