US Fed officials strengthen expectations for an interest rate cut in July, with copper prices fluctuating upward overnight and closing higher [SMM Copper Morning Comment]

       SMM June 24 News: Overnight, LME copper opened at $9,643.5/mt, dipping to a low of $9,615.0/mt and peaking at $9,697.0/mt, before closing at $9,694.5/mt, up 0.35%. Trading volume stood at 13,137 lots, with open interest at 286,663 lots. In terms of trend, prices initially fluctuated with a downward shift in the center before fluctuating upward, reaching a high near the close. Overnight, the SHFE copper 2507 contract opened at 78,340 yuan/mt, dipping to a low of 78,200 yuan/mt and peaking at 78,460 yuan/mt, before closing at 78,450 yuan/mt, up 0.15%. Trading volume stood at 13,276 lots, with open interest at 154,041 lots. In terms of trend, prices initially dipped before fluctuating upward, with fluctuations at a relatively high level. On the macro front, Fed officials Bowman and Goolsbee both suggested that if inflationary pressures are contained, they would support an interest rate cut in July. Goolsbee claimed that since Trump imposed tariffs on April 2, there has been a lack of significant inflationary pressure, which might allow the Fed to resume interest rate cuts. Bowman indicated that if inflation remains mild, she would support an interest rate cut in July. The US dollar index continued to decline, supporting copper prices. On the fundamental front, as of Monday, June 23, copper inventories in major regions across China tracked by SMM fell by 16,300 mt WoW to 129,600 mt. Compared with inventory changes last Thursday, inventories declined in all regions across the country, mainly due to lower arrivals and outflow of warrants. As month-end approaches, suppliers are actively selling, but the market is bearish on the outlook, expecting spot premiums to continue to decline. Overall, with the US dollar index continuing to fall, copper prices are expected to find bottom support today.