Copper is under selling pressure – TDS

Red Metal is under selling pressure influenced by price action in the base metal complex, TDS Senior Commodity Strategist Ryan McKay notes.

China hoards Copper inventories

“Price action in the base metal complex continues to stave off Commodity Trading Advisor (CTA) selling pressure in Copper, however the higher selling trigger, now at $9,422/t, is becoming more of an entrenched risk for the Red Metal.”

“With our gauge of global commodity demand continuing to weaken, while depressed premiums and surging inventories in the Middle Kingdom argue against fundamental tightness, top traders in Shanghai Futures Exchange (SHFE) have taken on a net short position.”

“While the fundamental situation certainly looks promising in the years to come, the lack of evidence supporting current physical tightness can continue to see these money manager positions unwind.”