SMM, July 3:

Today, the main force of copper in Shanghai opened at 49310 yuan / ton in the morning, and after the opening, the center of gravity of copper price stabilized at 49320 yuan / ton, and then short positions pulled copper prices up briefly, exploring a daily high of 49390 yuan / ton. At this time, the bulls gradually reduced their positions and left the market, and the market continued to decline, falling all the way to the lowest point of the day, 48840 yuan / ton. In the early afternoon, the price of copper rebounded to close at 49060 yuan / ton. Copper prices fluctuated upwards in the afternoon, leaving the market around 49140 yuan / ton. The market fell again, and finally closed at 48900 yuan, down 350yuan / ton, down 0.71%. Intra-day 08 contract reduced positions by 6450 to 122000, mainly for long positions; trading volume changed little; Shanghai Copper 07 contract reduced positions by 5675 to 38000, mainly for long positions. Trading volume decreased by 4000 to 25000 lots. The weekly increase of money supply M1 and M2 announced in the United States today is limited, the effect of economic stimulus measures is gradually dissipating, the pace of US economic recovery is slowing, the downward pressure is increasing, and the market macro sentiment is cautious, which forms a certain resistance to the upward price of copper. From a fundamental point of view, the impact of the South American epidemic on Chilean copper production has not been obvious. The Chilean Copper Commission (Cochilco) showed that Chilean copper production increased by 3.7% from January to May 2020, easing the pessimistic mood of tight supply the day before yesterday. Social inventories rose 37300 tons month-on-month to 199300 tons on Wednesday, the first increase in recent months, leading bulls to cut positions and driving copper prices down, according to a survey by SMM. Today, Shanghai copper overcast, MACD red column narrowed, but below there is still a 5-day moving average to support the bottom, copper prices upward pattern has not been destroyed. Wait for the outer disk guidelines in the evening to test whether the bulls can continue to make efforts to help copper prices gain momentum again.