MCX Copper under fresh buying; Support seen at 413
Commodity Online | May 26 2020
UPDATED 10:10:19 IST

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Technically Copper market is under fresh buying as market has witnessed gain in open interest by 12.71% to settled at 2474 while prices up 1.65 rupees.

Now MCX Copper is getting support at 413 and below same could see a test of 411.9 levels, and resistance is now likely to be seen at 415.6, a move above could see prices testing 417.1.

Copper yesterday settled up by 0.4% at 414.1 on short covering after prices dropped as China did not set an annual growth target for the first time as the coronavirus pandemic pummels its economy, while mounting Sino-U.S. tensions also hit prices of the red metal.

China's gross domestic product (GDP) target was omitted from Premier Li Keqiang's work report for the first time since the government began publishing such goals in 1990.

Investor sentiment was also pressured after Beijing's plan to impose a new national security legislation on Hong Kong drew a warning from U.S. President Donald Trump.

Copper inventories in warehouses tracked by the Shanghai Futures Exchange (ShFE) dropped at the fastest rate in nearly eight months, weekly exchange data showed.

Copper inventories in ShFE warehouses for the week ending May 22 fell to 175,825 tonnes, down 15.8% from a week earlier and the biggest decline since Sept. 27. Stockpiles fell after rising for the first time in two months in the previous week.

Chinese state-owned firm Chinalco's general manager called on China to rein in "blind expansion" of copper smelting capacity. The global world refined copper market showed a 5,000 tonnes surplus in January, compared with a 54,000 tonnes surplus in December, the International Copper Study Group (ICSG) said in its latest monthly bulletin.

Trading Ideas:
--Copper trading range for the day is 411.9-417.1.
--Copper gained on short covering after prices dropped as China did not set an annual growth target for the first time as the coronavirus pandemic pummels its economy.
--Further mounting Sino-U.S. tensions also hit prices of the red metal.
--Copper inventories in warehouses tracked by the Shanghai Futures Exchange (ShFE) dropped at the fastest rate in nearly eight months.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
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Sugar 197 3282.00

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