Reuters commentary (May 25)

LME Market – London Metal Exchange (LME) copper prices expanded gains in light conditions on Wednesday, boosted by consumer and technical buying, and the stock market decline also provided support. Three-month copper futures closed at US$3,069 per tonne. On Tuesday evening, the composite transaction closed up $19. The spot/three-month inverse spread widened to $182. "Market sentiment has improved but there is not much important news to support this rally," said one LME trader. "I think this At the beginning of the week, the market was a bear market, and stop-loss buying was triggered during the uptrend. This situation has frequently occurred in the past few months." He added that economic data are mixed – the US durable goods orders outpaced expectations in April However, the European corporate confidence index was weak - thinly traded. Copper stocks fell by 1,000 tons to 49,225 tons, slightly higher than the 43,625 in January, which was lower since May 1988. BaseMetals.com analyst Adams said, "LME Inventories are low and still declining, the market is tight, so it may still be up, although the longer-term outlook is not optimistic. ""Overall, metal materials will be further consolidation, due to short covering and consumer buying to dominate market conditions, may further Stronger."" Copper is unlikely to rush quickly On the upside, due to the limited upside, the fund is unlikely to be able to do much more. And if the US dollar continues to strengthen, the fund may also tend to lighten up. "The euro rose slightly against the US dollar to 1.2605 US dollars, hit a seven-month low on Monday 1.2533. Aluminium stocks fell only 75 tons, zinc stocks fell 650 tons, lead stocks fell 925 tons, nickel stocks rose 126 tons. Three-month aluminum rose 10 US dollars to 1,750; three-month zinc rose 15 US dollars to 1,268; Three-month lead has no transaction, but the offer rose by 3 US dollars to 966/67. COMEX copper--Commercial Futures Exchange of New York (COMEX) copper rose sharply on Wednesday, market participants have strong supply and demand fundamentals. Received trading guidance and was not affected by the rise in the U.S. dollar. A protest by a mining giant BHP Billiton in a mine in Peru stalled production, causing traders to worry about supply, and the inventory of exchanges also dropped sharply. Earlier, the United States announced that the annual sales of new homes rose to a record high in April, and the increase in durable goods orders was higher than expected, making the trend of copper prices show a solid tone. July copper rose 1.45 cents to close at 1.4195 US dollars per pound, intraday in USD 1.4020-1.42 USD In May, the spot copper jumped by 2.4 cents to $1.5290 per pound in May, as the market worried about the possible disruption of supply in the near term. Other months before December, contracts were active and closed up 0.10 to 1.05 cents. Brokers said that there were few buy-sides for speculators, speculators and small funds on the floor Wednesday. COMEX copper futures volume was estimated at 18,000 on Wednesday, up from 13,337 on Tuesday.