Posts Tagged ‘stockpiles’
Copper Posts Fully Bullish Week as Stockpiles Fall
The copper is ending the week with all 5 days being bullish and with the biggest total weekly gain in about 5 months as the stockpiles of the metal continue to fall.
According to the reports on LME, the stockpiles have dropped for 22 consecutive weeks and for the 26th straight day today. As the
The weekly gain of the metal was also spurred by the growth of the real estate sector expectations in United States and the rallying stock market, which increased the eagerness of the market participants to invest in commodities. Pessimistic analysts expect copper to continue in the bullish trend till the end of summer but await some correction afterward.
Spot copper rose from $6,973.00 to $7,031.00 as of 19:55 GMT today. The weekly growth stretches from $6,479.00 or 8.52 percent.
Wheat at 13-Month High on Droughts, Floods, Stockpiles Concern
Wheat reached 13-month high levels today as the weather troubles continue to remain a major concern of the main commodity suppliers across the world. It also looks unlikely that China or India will sell from their wheat stockpiles to satisfy the global demand.
Floods in Canada and droughts in Australia, France, Kazakhstan and Russia threaten the grain production in those regions. According to the market researchers, the wheat production in Western Australia is to fall by 9.5 million ton this year. Russian exports may be decreased by the government limits this year as the crops are falling there.
Despite the fact that the world consumers will have to buy more grain from the southern hemisphere this year, such big holders of the wheat stockpiles as China and India will probably refrain from parting with them. Analysts believe that the prices will stop rising so fast only if some other exporters will cover the supply deficit. Technical analysis factors support the bullish point of view.
Wheat went up from $586.25 to $599.50 as of 16:33 GMT on CBoT today, a spike to $609.75 was recorded earlier.
Copper Rises at Fastest Pace Since June 25
The copper grew at the fastest speed since June 25 today as the markets reacted to the increased building permits that were reported in United States today. Today’s growth was also spurred with a continued decline of the commodity’s stockpiles.
Copper is a major beneficiary of the growing real estate market. For the first time since March, the U.S. building permits showed a growth — from 574,000 to 586,000 (seasonally adjusted annual rate). It surpassed rather pessimistic growth expectations by the market analysts. According to them, any more or less good news from the housing market are going to be helpful for copper.
Copper stockpiles monitored by the London Metal Exchange decreased by 0.8 percent or 3,250 metric tons today. That’s 23rd straight session of decline of the copper stockpiles. Some analysts believe that the copper has left the bearish trend zone and is going to be bullish until the end of the year and for some part of 2011.
Spot copper is currently trading near $6,645.00 per metric ton as of 16:50 GMT after opening at $6,517.00 today. It has gained 1.93 percent during the day — the biggest upward movement since June 25 (3.03 percent).
