US Dollar Weakness Lifted LME Lead to a Near Two-Month High [SMM Lead Morning News]

SMM, August 13:

Overnight, LME lead opened at $1,905/mt and consolidated during the day, trading mostly between $1,905 and $1,910/mt. Later, supported by a weaker US dollar index, LME lead drifted higher and hit an intraday high of $1,922.5/mt, its highest in nearly two months. In late trading, LME lead gave back most of its gains and closed at $1,902/mt, down 0.05%.

Overnight, boosted by LME lead gains, the most-traded SHFE lead 2609 contract opened higher at 15,975 yuan/mt. In early trading, it rose sharply and broke above the 16,000 yuan/mt level to hit a high of 16,015 yuan/mt, its highest in nearly one month. However, with strong resistance above 16,000 yuan/mt, SHFE lead failed to hold above that level and gave back some gains in late trading, eventually closing at 15,965 yuan/mt, up 0.57%; open interest was 43,741 lots, down 1,431 lots from the previous trading day. In addition, open interest in the SHFE lead 2609 contract has continued to shift to the SHFE lead 2610 contract; open interest in the SHFE lead 2610 contract currently stands at 68,875 lots, and the subsequent rollover of the most-traded contract warrants attention.