Copper has also shown signs that momentum could turn negative. The ratio of copper net-long positions to the metal’s open interest is near the highest since at least 2006. Futures reached the highest since 2015 in February, and have since struggled to regain momentum amid concerns about demand prospects. If the price remains in the current range, the momentum signal will “inevitably turn negative” some time close to May, Panigirtzoglou said. The price of copper for delivery in three months fell 0.6 percent to close at $5,858 a metric ton Thursday on the London Metal Exchange.
5. Cotton Divergence
Traders have piled into cotton, buoyed by demand prospects from China and the outlook for a third straight annual deficit that is trimming global stockpiles. Yet speculators may see near-term price pressures amid expectations for higher production. The surge in cotton prices is likely to boost U.S. plantings, the U.S. government said last week. While net-long positions in futures and options have held near a record reached last month, Commodity Futures Trading Commission data show, futures prices have slumped for two straight weeks.
This article was provided by Bloomberg News.