Commodity MCX Copper Tips

Copper recovered from multi month lows on Monday as hopes of recovery of US economy resulted in return of some buying in the metal. London Metal Exchange Copper was trading up by $ 58 per tonne, at $ 7823 per tonne. MCX Copper is expected to open up from last week settlement of Rs 425.9 per kg. Resistance for the contract is at Rs 427 per kg. Supports for the contract are at Rs 423 per kg.

Although, fund managers are still betting bearish on Copper, prices moved up after last week report of US GDP provided necessary support. US Bureau of Economic Analysis said that GDP rose to a seasonally adjusted annual rate of 2.0%, from 1.3% in the preceding quarter.

The Commodity Futures Trading Commission Managed money funds slashed bullish bets on Comex copper futures and options in the week ended Oct. 23. Traders in the category sold 3938 long positions, or bets on higher prices, and added 1771 short positions, or bets on lower prices. This took their net positions down 24% to 18067 long contract from 23776 long contracts a week earlier.

LME Aluminium three month forwards were unchanged at $ 1924 per tonne. MCX Aluminium ended last week trades at Rs 102.7 per kg, up 0.15%. International Aluminium Institute (IAI) said total world aluminum inventories in September fell by 63000 metric tons to 2.332 million tons. World stocks in August stood at 2.395 million tons. September stocks were down 197,000 tons compared with the same month of 2011, when inventories were recorded at 2.529 million tons, the IAI said.