The CME Group seems to be doing its best LME impression, catching a lot of attention.
As Reuters reports, here’s the bizarre order of events:
“On March 22 when Henry Bath, the warehousing firm owned by JPMorgan Chase & Co which runs the CME’s only New Orleans site, took its first ever delivery of the metal, according to exchange data. On March 28, the LME reported the biggest one-day cancellation of New Orleans copper stocks in at least a decade. And on April 3, an unusually large 550 short tons (498 tonnes) of copper was registered at the CME’s warehouse in New Orleans.”
Hmm…the financing deals that have been confusing metal buyers in the aluminum markets appear to be causing more trouble in the copper sector.
But will that affect copper prices for buyers?
The price of Chinese copper wire rose 0.8 percent on Wednesday, May 29, making it the day’s biggest mover after two days of falling prices. Chinese bright copper scrap prices inched up 0.4 percent. After a 0.4 percent increase, Chinese copper bar finished the day up. The Chinese copper cash price increased 0.4 percent.
After a 0.5 percent increase, the price of US copper producer grade 122 finished the day higher. Following a couple of essentially changeless days, the price of US copper producer grade 110 rose by 0.5 percent as well. The price of US copper producer grade 102 improved by 0.5 percent too on Wednesday. After dropping for two days, the Japanese copper cash price flattened.
On the LME, the copper 3-month price gained 0.3 percent to finish at $7,299 per metric ton. After a 0.2 percent increase, the cash price of primary copper finished the day on the LME at $7,257 per metric ton.