Long-drawn-out shutdown in world’s second biggest mine has underpinned Copper prices that are marching forward. The LME three month Copper prices were trading at 11 days high levels as it crossed $ 7400 per tonne. Copper has been gaining on account of higher spot premiums in China due to lower available quantity.

Meanwhile, Freeport Grasberg mine was closed down and is expected to remain closed for government investigation for a period of three months. Production outage can slash 150000 to 200000 tonnes of Copper supplies from the markets. Inventories of Copper are still at higher levels at 614075 tonnes, up 92 percent in 2013 so far.

MCX Copper closed down at Rs 420.5 per kg, up 1.2 percent. Further gains are expected in the markets with targets of Rs 422 kg. Supports for Copper are at Rs 416 and 414 levels. Click here to get more information about Copper Updates and more Commodity Tips. For Commodity Tips Free Trial visit here: http://maxcommodity.com/free-trial/

Markets are cheering few factors at the moment. One is the closure of Freeport mine, the other one is the rise of Euro against the Dollar. Dollar ended the trades at 1.3081 against the Euro, compared to 1.3069 on Monday.

Last week, COMEX Copper fund managers, Commitment of traders CoT report showed decline in the short positions while there was concurrent minor decrease of long positions by hedge fund managers. The total short positions declined by 899 contracts taking total short contracts number to 36038 contracts against 36937 contracts in the previous week

Source: www.commoditytrademantra.com