SMM Brief on Copper Futures on Aug. 3

SHANGHAI, Aug. 3 (SMM) –SHFE 1110 copper contract prices, the most active one, opened down RMB 330/mt at RMB 71,900/mt on Wednesday, with weak rising momentum during the whole trading day. SHFE three-month copper contract prices gained support after dropping briefly to RMB 71,850/mt after opening, tracking LME copper prices to move stably higher. Coupled with rising domestic stock markets in the morning business, SHFE three-month copper contract prices gradually pared Tuesday’s losses, but met resistance at the 20-day moving average of RMB 72,280/mt. LME copper prices also met pressures at this price mark, causing stock markets to fall from initially increasing, and leading SHFE three-month copper contract prices to lose RMB 72,000/mt again. Finally, SHFE 1110 copper contract prices closed at RMB 72,060/mt, down RMB 170/mt, or a loss of 0.24%. Positions for SHFE 1110 copper contracts were up 5,400 lots, while trading volumes were down 32,830 lots. With the existing resistance at the 20-day moving average, both the longs and shorts were wary of building new positions. Hence, SHFE three-month copper contract prices were expected to continue to make corrections.