Bears Continue To Grip Copper As Prices Topple Down To Three Month Lows

Copper....

Bears have continued to grip Copper as prices have toppled down to three month lows. MCX Copper contract moved down yet again on increase of short positions in the metal. In LME, rising supplies continued to destabilize the metals. LME three month forwards declined to $ 7733 per tonne, down $ 11.5 per tonne. The rise in Copper stockpiles for the fifteenth straight day in LME further derailed the metal. The LME inventories of Copper moved up by 775 tonnes to 473750 tonnes on 6 March 2013. In US, ADP private payroll survey showed that the private US employers added 198000 new jobs last month. Januarys figure was revised up to a gain of 215,000 from a previously reported increase of 192,000. Elsewhere, the U.S. Census Bureau reported that factory orders fell by 2% in January, less than market calls for a drop of 2.2%. In currency markets, US Dollar strengthened against the Euro and settled at 1.2965 as against 1.305 on 5th March 2013. Currency markets are eyeing policy statements from Bank of England and European Central Bank today. MCX Copper closed at Rs 427.2 per kg, down 0.83%. The metal tested a low of Rs 426 per kg and a high of Rs 430.5 per kg yesterday. The prices are supported at Rs 425 per kg while Resistance for the contract is at Rs 431 per kg. One of the worlds biggest producer of Copper Freeport McMoran has said that it expects that the production of Copper in its Grasberg mine increase by 30% in 2013. Copper is already feeling the pressure of supply glut. Source by Commodity Insights