Copper Short-Sellers Beware

A recent report from Reuters warned that there may be more to copper prices than meets the eye, especially for those hoping to bet on further losses for the red metal.
As quoted in the publication:

Benchmark three-month copper futures hit a six-year low of $4,855 a tonne on Monday, capitulating to fears about the growth outlook in top consumer China.
Prices recovered some poise after Beijing cut interest rates, but they are still more than 20 percent below the 2015 high of $6,481 a tonne.
Peeling back the top layer shows the premium – or backwardation – for cash copper over metal to be delivered in three months jumped to $32 a tonne from a discount two weeks ago of $15, suggesting robust demand for nearby delivery.
The premium reduces the potential profitability of short positions when closing or rolling forward.

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