Copper: Buying Recommended At Lower Levels
CommodityOnline | Jan 22, 2014 05:48AM ET
Copper ended the yesterday's trading marginally higher by 0.3% at the LME platform recovering smartly form it intraday lows on the back of IMF increasing its global growth forecast from 3.6% to 3.7% .
Copper stockpiles in the warehouses monitored by LME continue to broadly decline and are presently at the lowest levels since March 2012. International copper market is trading at backwardation which is presently at $64.50, the widest backwardation witnessed since May 2012 indicating supply tightness in the commodity.
During the day, we recommend buying copper from the lower levels at the MCX platform as the commodity might get positive cues from the that the IMF increased the global growth forecast to 3.7% when compared with an October 2013 estimate of 3.6% indicating a healthy demand for the industrial metals along with the supply tightness being witnessed in the red metal due to backwardation.
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