Column: Funds call it quits on copper stocks poker game: Andy Home – Reuters

Column: Funds call it quits on copper stocks poker game: Andy Home – Reuters

LONDON, Dec 13 (Reuters) – Fund managers appear to have closed their copper trading books early this year.

Speculative positioning on both the London Metal Exchange (LME) and CME copper contracts has fallen sharply since October’s frenzied trading, which saw LME three-month metal spike up to $10,452.50 per tonne amid unprecedented time-spread turbulence.

The market has since calmed. The premium for cash copper, which flared out to $1,103.50 per tonne before the LME stepped in to limit the backwardation, closed Friday valued at flat.

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The three-month price has spent the first half of December trading languidly either side of the $9,500 level, last at $9,498 per tonne.

LME inventory has risen from the extreme lows seen in October, but there has been no sign yet of the mass deliveries threatened by China’s producers.

Was it a bluff? Or is the metal on a slow boat from Shanghai?

This game of copper stocks poker may not be over yet, but the added uncertainty has persuaded funds to fold their cards and call it quits on copper for the rest of the year.

Fund managers have closed their copper books early this year

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Source: https://www.reuters.com/markets/commodities/funds-call-it-quits-copper-stocks-poker-game-andy-home-2021-12-13/

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