Copper Fundamental Forecast – May 9, 2016

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Published: May 6, 2016, 11:55 UTC

Copper dipped 4 points as the greenback as traders moved to gold and other safe havens ahead of the US jobs reports. Copper is trading at 2.15. Officials

Copper Fundamental Forecast – May 9, 2016

Copper dipped 4 points as the greenback as traders moved to gold and other safe havens ahead of the US jobs reports. Copper is trading at 2.15. Officials governing futures markets are trying to cool a speculative fervor that has pushed up prices and trading volumes for raw materials and agricultural products in recent months.

The price of futures contracts for items including coking coal, steel and even eggs have risen since the beginning of the year. Between January 4 and April 26, the price of coking coal contracts increased by two-thirds, data from futures exchanges show, and the number of contracts traded rose from 106,000 to 2.42 million.

Price indexes of steel rebar, the rods used to reinforce concrete, and iron ore went up by over 40 percent during the same period.

An increase in speculation in futures markets in China “poses multiple dangers to global commodity pricing stability,” a recent report from Citigroup said.

However, a weak trend in the base metals in global market on concern that weak demand in China, the world’s largest user, points to persistent supply gluts, capped the gains.

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