metals,oil and everything else
Is Comex Copper next?
July 6…)
The NYMEX has yet to recover from its negative pricing debacle in April 2020. LME nickel will take years to recover from the Tsingshan scandal in 2022. Both markets are radioactive to fiduciaries and other fund managers except for very high-risk AUM.
Is Comex Copper next?
The Sept/Dec Comex spread traded at its May 14 squeeze highs on Friday July 5 (chart below).
The Comex arb traded $300/ton over London on Friday, according to mining.com. Bloomberg data (chart below) shows outstanding open interest of 3348 lots in July and 4373 in August cob Friday. These dates combined total about 10X current inventory.
August is a serial month and rarely active. As you can see from the chart below August OI was ca 600 until it tripled in mid May and doubled again by July first notice day. No one trades August Comex copper flat price. These are spreads, imo, but outstanding OI might stand for delivery if conditions tighten.
