January Copper Update

  • 6 Feb 2018
  • By CME Group
  • Topics: Metals

Copper Updates

  • Effective at 27 February close, spot month position limits will increase from 1,200 to 1,500 futures contract equivalents for five Copper futures and option contracts.
    Read More
  • After a high of 3.3220 on 28 December, March Copper futures entered a correction period despite sharp price swings (down 2.74% on 23 January, then up 3.78% the next day).
  • Potential supply disruptions, including numerous strikes as well as positive demand outlook from copper semi-fabricators, contributed to price strength.
  • Copper futures long positions held by Money Managers decreased 27% from 134.6K lots on 2 January to 99K on 30 January as the copper price retreated from highs. Short positions held by Money Managers doubled from 21K to 43K contracts within the same period.
  • Higher market volatility was supported by volume increases in Copper futures and options. Copper futures January ADV reached 131.5K contracts (~1.5 mil mt), up 55% YoY.
  • Copper options January ADV reached approximately 960 contracts, as liquidity continued to grow and electronic markets got narrower and deeper.

Copper Price Performance

Copper Futures Forward Curve

Copper Futures Month-on-Month Change in Open Interest


Liquidity Charts

January 2018 ADV per hour (based on GMT time-zone)

Source: CME Data, as of 31 January 2018


Copper Futures Market Depth

Source: CME Data, as of 31 January 2018


Copper Inventory Movements

Date Total Inventory Eligible Registered Registered, %
31/01/2017 102,771 1,878 100,893 98%
31/12/2017 210,972 9,576 201,396 95%
31/01/2018 222,305 10,446 211,859 95%
MoM Change, % 5% 9% 5%  
YoY Change, % 116% 456% 110%  

Source: CME. Data as of 31 January 2018


Disaggregated Commitment of Traders Report

Open Interest

Data as of Year Open Interest % Change in OI (WOW)
1/30/2018 287352 1.07%

Long

Data as of Year Producer / Merchant Positions Long Swap Dealers Positions Long Managed Money Positions Long Other Rept Positions Long Nonrept Positions Long Total Long
  % Change in Producer Long (WOW) % Change in Swap Long (WOW) % Change in Managed Money Long (WOW) % Change in Other Rept Long (WOW) % Change in Nonrept Long (WOW) %Change in Total Long
1/30/2018 37264 45618 124001 62975 17494 287352
  17.06% 9.82% -5.49% 4.67% -10.56% 1.07%

Short

Data as of Year Producer / Merchant Positions Short Swap Dealers Positions Short Managed Money Positions Short Other Rept Positions Short Nonrept Positions Short Total Short
  % Change in Producer Short (WOW) % Change in Swap Short (WOW) % Change in Managed Money Short (WOW) % Change in Other Rept Short (WOW) % Change in Nonrept Short (WOW) %Change in Total Short
1/30/2018 123339 17937 68260 64877 12939 287352
  3.70% 29.08% -2.54% -6.37% 6.65% 0.79%

Total

Data as of Year Producer Total Swap Dealers Total Managed Money Total Other Rept Total Nonrept Total
  %Change in Producer Total %Change in Swap Dealers Total %Change in Managed Money Total %Change in Other Rept Total %Change in Nonrept Total
1/30/2018 160603 63555 192261 127852 30433
  6.52% 14.65% -4.46% -1.24% -3.97%

Source: CFTC Data, as of 30 January 2018

Source: CFTC, Data of of 30 January 2018

Source: CFTC, Data of of 30 January 2018


Copper Premium Futures

  • Newly launched copper premium futures traded 85 lots in January as Open Interest reached 349 contracts. Market is slowing down ahead of Chinese New Year holiday (15-21 February).
  • There are good two-way markets on the screen till the end of 2018.

Copper Options

Put/Call Options Open Interest Breakdown and Top Strikes

Top 5 Open Interest for HIGH GRADE COPPER OPTION for 2/2/18
Product Long Desc Contract Month Strike OI
HIGH GRADE COPPER OPTION 201803 3.3000 750
HIGH GRADE COPPER OPTION 201812 3.1500 700
HIGH GRADE COPPER OPTION 201803 3.2000 681
HIGH GRADE COPPER OPTION 201803 3.1000 672
HIGH GRADE COPPER OPTION 201803 3.1500 562

Source: CME. Data as of 31 January 2018.

Copper Options: Bid/Ask Spreads Heatmap

Source: CME. Data as of 31 January 2018.

Copper Options: Depth Heatmap

Source: CME. Data as of 31 January 2018.

*Percentiles represent portion of time when the order book is available


If you have any questions or would like more information regarding this weekly communication, please contact metals@cmegroup.com.

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