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 | |
| Product Symbol | HG |
| 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 Type | Physical |
| 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. |
| Source: CME | |
Copper Facts
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.
Source: Barchart
Last updated May 2013
Additional Info
Recent Posts on Copper
- Beyond the “Spotlight” (5/2/2016) - This weekly feature examines chart formations, along with technical indicators, of two to three commodity markets. Breakouts of these formations may lead to trading recommendations published by the Trade Spotlight advisory service.
- A Taylor Trading Technique Trade in Copper Futures (10/23/2015) - I use the Taylor Trading Technique (TTT) for much of the analysis for my Swing Trader’s Insight advisory. The TTT attempts to anticipate a market’s direction for a trading session and then trade accordingly; there was a good TTT trade today in the copper futures.
- Futures News – February 2015 News Roundup (3/2/2015) - In this monthly news roundup, we'll look at how crude finally halted its freefall in February, gold's biggest monthly loss since September and how reports of a Chinese economic stimulus impacted copper prices.