Short Positions in Copper Increasing

Base Metals Investing

Reuters reported that more funds are betting on lower copper prices on the London Metal Exchange (LME).

Reuters reported that more funds are betting on lower copper prices on the London Metal Exchange (LME).
As quoted in the market news:

Money managers’ net short positions rose to 5,249 lots or 131,225 tonnes on Friday from 1,359 lots the previous week, the exchange’s Commitments of Traders Report showed on Tuesday.
Benchmark copper on the LME slid to a six-year low of $5,142 a tonne on Monday, a drop of nearly 20 percent from the May peak. It was trading around $5,250 on Tuesday.
Analysts say the report underestimates the full extent of short positions, partly because it only includes trades put through a clearing house. Many fund managers trade and clear through brokers or banks.

Click here for the full Reuters article.

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