Indian Copper was trading at Rs 440.8 per kg, up 0.94%. The prices tested a high of Rs 442 per kg, and a low of Rs 438.7 per kg. Large precious metals speculators sharply cut back on their bullish net positions in the Copper futures markets this week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.
The non-commercial futures contracts of Copper futures, traded by large speculators and hedge funds, totaled a net position of 19,187 contracts in the data reported through Tuesday March 27th. This was a weekly decline of -11,674 contracts from the previous week which had a total of 30,861 net contracts.
Speculative positions have now fallen for three straight weeks and for four out of the past five weeks. The overall bullish level has fallen to the lowest position since July 18th of 2017 when net positions totaled +15,330 contracts.The commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -26,293 contracts on the week. This was a weekly rise of 14,315 contracts from the total net of -40,608 contracts reported the previous week.
The March Caixin Purchasing Managers Index came in at 51.0, below both the 51.7 expected and the previous months 51.6. In the logic of PMI data any reading above 50 signifies an expansion for the sector in question. Caixin said that demand had not been as strong as expected through the month, and that the growth momentum of Chinese manufacturing may have weakened but if so only marginally. The Australian Dollar often acts as a liquid China proxy thanks to its homelands strong raw material export links to China. It may have done so to a limited extent in this case, although the Easter Monday holiday has probably thinned trade in Australia Monday, as it will continue to do across Europe. The official PMI which concentrated on larger, state-run manufacturers was released last weekend. It came in at a stronger than expected 51.5, well above Februarys 50.3.