I have some news related to commodities. As the market it still unexpected and i hope the market is again going to some downfall.
LME metals edge lower after enormous overnight gain
Shanghai copper and zinc edge up after LME rally
Tin bounces approximately 50 percent in less than a week
Markets may have bottomed, risk opening to favour longs
Oct 30 – Shanghai copper and zinc open at their 4 pct upside limits on Thursday, chasing a huge rally in London that axiom copper jump almost 13 pct after sheer losses in the precedent two weeks.
However, London futures edge lower, snapping their best ever string of gains seeing as mid-September on profit taking, in spite of an increase in the EUR.
The greenback posted its major one-day fall in 23 years on Wednesday, as the Fed delivered an predictable 50 point rate cut and China’s central bank also cut rates, raising hope that order would not sluggish as much as feared.
“Today’s cascades are not enormously significant. The marketplace was vault to rise as it was extremely oversold, it was presently the timing that was in uncertainty,” a metals merchant said in Singapore.
“Direction will be single-minded by equities, the dollar and all the customary economic marketplace factors that have been lashing this. However, the risk at present seems to favour being long rather than short. However we are not putting on at all big directional position.”
LME copper for release in three months chop down 1.2 pct, or $55, to $4,600 a tone by 0355 GMT, bountiful up a few of Wednesday’s $525 increase.
Prices have risen around 20 percent so far this week and if the market can maintain those gains, copper is set for its biggest weekly rise since September 1979. Despite that, for the month prices are down 28 percent, which would be their biggest fall in at least three decades.
“The down shift has to foot out at some point. We have seen a few real lows veteran our foot for copper is in the region of $3,500 to $4, 000,” Said by Edward Meir MF Global analyst.
On Monday, price dished to $3,590, their weakest additional than three years.
“The turn down may have broken and we are set for a phase of sideways trade in 2009, much as we axiom at the beginning of the century,” Edward Meir said.
Copper futures in Shanghai rose by their 4 pct threshold to 33,100 yuan ($4,838) and zinc top out at its edge, at 9,515 yuan in early on trade after London zinc jump approximately 10 pct.
LME tin cut down $25, or 0.2 pct, to $15,200. Tin price are up approximately 50 pct since plummeting to a 21-month low of $10,300 on Oct. 24.
“Tin is doing very well. Stocks are dropping, and the market is very dependent on a single producer, Indonesia, which has said it will cut production when prices fall below $15,000,” Meir said.
In contrast to most other metals, tin stocks have fallen steadily during 2008. LME inventories of the metal, which is seeing rising demand as a replacement for lead in electrical solder, have dropped 75 percent to 3,815 tonnes since August last year.
By contract, copper stocks have risen 78 percent in the same period. Metals prices are 0355 GMT.
Metal Last Change Pct Move End 2007 Pct chg 08
LME Cu 4600.00 -55.00 -1.15 6670.00 -31.00
SHFE Cu* 33100.00 1280.00 +4.02 56880.00 -41.81
LME Alum 2125.00 -26.00 -1.21 2403.00 -11.57
COMEX Cu** 207.15 0.00 +0.00 304.10 -31.88 LME Zinc 1210.00 -50.00 -3.97 2370.00 -48.95
SHFE Zinc 9490.00 265.00 +2.87 18950.00 -49.92
LME Nickel 13250.00 -390.00 -2.86 26350.00 -49.72
LME Lead 1530.00 -50.00 -3.16 2550.00 -40.00
LME Tin 15200.00 -25.00 -0.16 16400.00 -7.32
LME/Shanghai arb^ 3454 Dollar/yuan 6.8365 6.8368 **
1st contract month for COMEX copper
3rd contact month for SHFE aluminium, copper and zinc
LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
If any mistake please bear.
Happy trading.
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