Base Metals Aluminium, Copper, Lead, Nickel, Zinc. Bullion Gold, Silver. Energy Crude Oil, NG. Forex USD, INR, Euro, Yuan. Economic Data Reports.
LME, COMEX, NYMEX, MCX, Shanghai Markets.
Tuesday, June 17, 2014
Shanghai copper backwardation swells in squeezed market
The backwardation on the Shanghai Futures Exchange (SHFE) expanded sharply on Monday June 16, as some holders of short positions were squeezed ahead of the exchange’s June prompt date.
The outright price on the June copper contract, with delivery date of Monday, surged by some 1,590 yuan per tonne, or about 3.25%, in just the final half an hour of trading. The contract closed at 50,450 yuan per tonne, some 2,710 yuan per tonne higher than the September contract. "The large backwardation and the increase in the June contract are due to long investors squeezing the market," the head of futures at one big smelter said.