Economist Doug Porter at the Bank of Montreal has pointed out a surprising correlation between the Canadian dollar and the price of copper, in the bank’s morning commentary to clients Wednesday, according to the CBC.
Porter pointed out an uncanny correlation between the Canadian loonie and copper’s price, and suggests if that’s the case, the loonie could soon be headed higher.
“The commodity that has the tightest correlation with the Canadian dollar in recent years is copper — not oil, not gas, not lumber and not gold,” Porter told the CBC.
As the Canadian dollar was swooning for the first few months of 2014, so, too, was the price of copper plunging. “But since the early spring, both have made a Lazarus-like comeback, with copper bouncing back to its best level in more than four months and the [loonie] close to where it started the year (and nearly where it stood a year ago).”
On Thursday, July 10, the day’s biggest mover was the price of Chinese copper wire, which saw a 0.9 percent decline to CNY 51,310 ($8,276) per metric ton. At CNY 52,170 ($8,415) per metric ton, Chinese copper bar fell 0.7 percent yesterday. The cash price of Chinese copper fell 0.7 percent to CNY 52,370 ($8,447) per metric ton. The price of Chinese bright copper scrap saw little movement at CNY 44,300 ($7,145) per metric ton.
The price of US copper producer grade 122 declined 0.3 percent to $3.93 per pound. The price of US copper producer grade 110 saw a 0.3 percent decline to $3.93 per pound. The price of US copper producer grade 102 weakened by 0.2 percent, settling at $4.12 per pound. The cash price of primary Japanese copper declined 0.1 percent to JPY 754,000 ($7,425) per metric ton.
On the LME, the primary copper cash price rose 0.3 percent to $7,173 per metric ton. Also on the LME, the copper 3-month price saw little change in its price on Thursday at $7,156 per metric ton.