Expect LME Copper prices to trade lower: Angel

Angel Commoditie's report on Commodities

Base Metals

Base metals on the LME traded lower yesterday as strength in the Dollar Index hit demand for dollar denominated commodities. Also, prolonged negotiations between Greece and its troika of creditors as Athens officials insisted on Monday that it would like to reach a deal necessary to stave off bankruptcy by the end of the month hurt market sentiments.

However, sharp losses were restricted owing to expectations of further policy easing by top consumer China. Aluminium was the biggest loser with losses of 2 percent in the international markets whereas Zinc declined by the least 0.3 percent.

On the MCX, base metals except Zinc traded on a negative note in line with international trends.

Related stories

Angel_Commodities_1

Angel Commodities

• 
  Gold prices are expected to trade sideways today: Angel Commodities
• 
  Copper prices are expected to trade lower today: Angel Commodities
• 
  Crudeoil prices are expected to trade sideways to higher: Angel Commodities

Copper

LME Copper prices fell by 0.5 percent yesterday owing to strength in the DX along with Greece concerns over debt repayments. Further, Copper output from Peru's four top producers, Antamina, Southern Copper, Cerro Verde and Antapaccay, was normal, despite a national strike on Monday.

However, sharp losses were cushioned as China is expected to undertake more stimulus measures in addition to the central bank's recent interest rate cut and a reduction in the amount banks must hold as cash in an attempt to spur lending and boost growth in the flagging economy.

MCX copper prices fell by 0.1 percent and closed at Rs.411.5/kg on Friday but Rupee depreciation restricted sharp fall.

Outlook

We expect LME Copper prices to trade lower as persistent Greece concerns along with strength in the cautious stance ahead of FOMC meeting minutes will be negative. However, Hedge funds and money managers boosted a bullish copper bet to the highest since July 2014 in the week ended May 12 will be supportive.

On the MCX, Copper prices are expected to trade lower taking cues from international markets.

For all commodities report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More