Base Metals Preview: COMEX Copper Soars Near Four Year Top

COMEX Copper soared near three year high in intraday moves amid supply worries and steady equities. Prices have soared this week on concerns over supply disruption in Chile and a weaker dollar index. Copper has gained around 5% this week after the union at BHPs Escondida mine in Chile, the worlds largest, said on Friday it had started the latest round of wage negotiations. Failure to reach a deal last year triggered a strike that resulted in a near 8% drop in annual Copper output. The metal currently trades at $ 3.26 per pound- up marginally on the day. MCX Copper closed at Rs 487.55 per kg- up 1% on the day. Large precious metals speculators cut their bullish net positions in the Copper Futures markets last week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC). The non-commercial futures contracts of Copper futures, traded by large speculators and hedge funds, totaled a net position of 37,600 contracts in the data reported through Tuesday May 29th. This was a weekly drop of -1,412 contracts.