SMM Brief on Copper Futures on Aug. 30

SHANGHAI, Aug. 30 (SMM) –SHFE 1111 copper contract prices, the most active one, opened up RMB 350/mt at RMB 67,700/mt on Tuesday. In the morning business, as LME copper prices broke through USD 9,000/mt, SHFE three-month copper contract prices moved upward after easily breaking the resistance of RMB 68,000/mt, touching a high RMB 68,430/mt. However, SHFE three-month copper contract prices finally narrowed the gains due to a slump in Chinese stock markets in the afternoon and position closings by the shorts at the tail of trading. SHFE 1111 copper contract prices closed the day at RMB 68,250/mt, up RMB 900/mt, or a gain of 1.34%. Positions for SHFE 1111 copper contracts were down 4,238 lots, while trading volumes were up 52,016 lots. Short-term speculative interest increased during the whole trading day, and SHFE three-month copper contract prices stabilized at the 20-day moving average, but the rising momentum mainly came from shorts’ position closings after meeting stop-loss limits. Funds out of the markets remained cautious, while investors were cautious towards keeping up with rising copper prices and doubted about today’s price gains, so SHFE three-month copper contract prices will likely fall back.