Expect LME Copper prices to trade lower: Angel Commodities

Angel Commodities' report on Base Metals

Base Metals

Base metals on the LME traded higher yesterday as an EU statement on Monday spoke of up to €86bn (£61bn) of financing for Greece over three years following about 17 hours of summit talks in Brussels, thereby giving Greece a bailout agreement and a chance of staying in the euro zone.

Also, decline in LME stocks except Copper supported gains.

On the MCX, all the base metal prices traded higher in line with international markets.

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Copper

LME Copper prices traded on a flat note on Monday as Greece bailout came as a relief for markets. However, gains were capped as China's economic growth is forecast to be the weakest since the global financial crisis in the second quarter, which together with a stock market rout raises pressure on authorities to do more despite little pay-off so far from a run of stimulus steps.

Also, Copper speculators and large futures traders increased their net bearish positions in copper last week.

MCX copper rose by 0.2 percent to close at Rs.359.4/kg in line with international markets.

Outlook

We expect LME Copper prices to trade lower today as Greece's Prime Minister Alexis Tsipras faces a showdown with rebels in his own party on Tuesday furious at his capitulation to German demands for one of the most sweeping austerity packages ever demanded of a euro zone government. Also, strength in the DX ahead of key retail sales data from the US will act as a negative factor.

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

For all commodities report, click here

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