SMM Brief on Copper Futures on Aug. 16

SHANGHAI, Aug. 16 (SMM) –SHFE 1110 copper contract prices, the most active one, opened slightly up RMB 20/mt at RMB 67,300/mt on Tuesday. Due to a stable US dollar, LME copper prices fell below USD 8,900/mt after profit-taking, and SHFE three-month copper contract prices fell rapidly after opening higher. Later, domestic stock markets moved lower, also weighing on SHFE three-month copper contract prices, which dropped below the 5-day moving average before the midday due to a sell-off by the shorts. SHFE 1110 copper contract prices were on a falling track during the whole trading day, with an intraday low at RMB 66,360/mt and finally ending at RMB 66,510/mt, down RMB 830/mt or 1.23%. Positions and trading volumes for SHFE 1110 copper contracts were down 3,828 lots and 26,720 lots, respectively, while positions and trading volumes for SHFE 1111 copper contracts were up 19,570 lots and 66,484 lots, respectively, suggesting the completion of the shift of the most actively-traded copper contracts. SHFE three-month copper contract prices will test the 5-day moving average.