SHFE Copper Ends with Gains (2016-12-5)

SHANGHAI, Dec. 5 (SMM) – On Monday, Shanghai Interbank Offered Rate (Shibor) was 2.3080%, down 1.20 basis points and 7-day Shibor was 2.4970%, down 0.40 basis point. Capital liquidity eased slightly. SHFE 1702 copper opened at RMB 46,650/mt and then declined to RMB 46,270/mt, hurt by positions opening by shorts. Later, the contract broke through the 5 and 10-day moving averages to RMB 47,630/mt with longs strengthening. SHFE 1702 copper dropped at the tail of trading due to longs taking profits and finally closed at RMB 47,360/mt, up RMB 710/mt. Positions increased 21,262 to 252,000 and trading volumes rose 33,918 to 364,000 lots. Positions of all SHFE copper contracts were up 23,248 to 547,682 with trading volumes up 15,482 to 548,000 lots. SHFE 1702 copper rallied on Monday as capital eased.

SHFE 1702 copper is predicted to keep rising for the short term. Attention should be on US’s employment condition in November and ISM nonmanufacturing PMI on Monday’s night.