New York Copper Market Tightens Again, Piling Pressure on Shorts
Spot copper prices are again trading at a steep premium to later-dated futures in New York, putting fresh pressure on holders of short positions after a historic squeeze last month.
The July-delivery Comex copper traded at a 7.4 cent-per-pound premium to the September contract, in a condition known as backwardation that typically signals a supply shortage. The spread traded in an unprecedented 29.25-cent backwardation last month, putting huge pressure on commodity traders and investors with short positions in the July contract. The global copper market is comfortably supplied overall, and equivalent spot contracts in Shanghai and London are trading at deep discounts to futures.But inventories in Comex warehouses have fallen to a 15-year low, and last month’s squeeze has forced traders to scramble to find and ship the select brands of copper that can be delivered into the US to settle their exposure. If they can’t find the material, they may need to buy themselves out of their contracts, and risk driving the July contract to an even higher premium in the process. With less than six weeks to go until the expiry of the contract, the re-emergence of the steep backwardation is a sign that many short-position holders are yet to cover their exposure. For investors without the means to deliver metal, the backwardation means that they’d face losses buying back their shorts and rolling them forward to later dates. And to get out of the contracts, they’ll be at the mercy of holders of long positions who stand to profit taking the opposite side of the trade.
The short squeeze was fueled partly by a huge surge in investment by bullish fund managers this year,(giving the illusion of growth as all you need to do is buy the contract(s) and others see it and then jump in for a momo. trade or they believe the ‘growth at all costs’ political narratives-either way they are attempting to do the same thing again here and if it does squeeze (the backwardation is just the potential start) the msm Finance articles will say “See Dr. Copper is signaling growth so it must be true”)and it helped catapult the New York copper contract to a record high. Prices also vaulted to records in London and Shanghai soon after, but they’ve retreated in recent weeks as some investors have taken profits and worries about the near-term outlook for demand have grown. July Comex copper was trading up 0.8% at $4.528 a pound as of 9:18 a.m. local time. The London Metal Exchange’s global benchmark copper contract climbed 1% to $9,764 a ton, as all industrial metals advanced.
https://www.bloomberg.com/news/articles/2024-06-19/new-york-copper-market-tightens-again-piling-pressure-on-shorts
https://tradingeconomics.com/commodity/copper
>>21049871 lb
Saudi Arabia SVA7198 G4Ministry of Financeleft Cairo Intl and back to Jeddah and not there very long about 35-40m tops
Some munee for this?
Egypt agrees to form Arab security force in Gaza after Israel-Hamas War - report
https://m.jpost.com/middle-east/article-806852
They are counting on it
Immigration surge expected to boost economic growth over next decade, CBO says
https://www.foxbusiness.com/video/6355305056112
Good recovery
>>21049577 lb
Italian AF ISM9001 A319PM Meloniback to Rome from Bucharest depart
EU Policy. Commission warns France, Italy and six other countries over budget deficit
https://www.euronews.com/my-europe/2024/06/19/brussels-set-to-take-aim-at-big-spenders-as-post-pandemic-deficit-rules-kick-in
French AF CTM1071 A330 departed Brasov Intl Airport, Romania after ground stop W
Croatia AF 9ACRO Challenger 600 Hamburg to Zagreb-they use this call sign for President, Cabinet, Gov’t officials do dunno who this is
>>21049706 lb
SAMFOX G5 landed at Brussels Intl from JBA depart earlier