SMM INE Copper Comments (Mar 9): Prices Closed Higher, 80% Odds of 50-basis-point Fed Rate Hike

The most active May copper contract on the Shanghai International Energy Exchange (INE) ended at 61,720 yuan/mt on March 9, up 300 yuan/mt or 0.49%. Trading volume was 12,455 lots and open interest stood at 12,777 lots.

On the macro front, ADP employment in the US in February was 242,000, compared to the expected 200,000, and the previous reading of 106,000. At present, there are few factors that can prevent the Fed from becoming more "hawkish", unless the non-farm report due this Friday and the CPI data scheduled next Tuesday both slow down significantly.

The probability of the Federal Reserve raising interest rates by 50 basis points in March rose to 77.9%. The US dollar index surged before falling and copper prices hovered at high levels.