Copper Contango Update

I have the feeling that we are going to make a bottom in copper soon, the contango will at one point begin to reverse. We are at 1.4% contango to price ratio now, it will go up to about 2-5% before it will reverse. Even when we have a copper surplus and record copper stocks in China.





Chart 1: Copper Contango Vs. Copper Price


The CFTC data shows that copper will most likely go up because large commercials are long.


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