MCX Copper prices fell -1.21% yesterday, setting at 756.4, as investors took profits on the metal’s recent rally and the strengthening of the dollar ahead of the Federal Reserve’s rate decision.
According to data from the United States Commodity Futures Trading Commission, on March 12. Comex traders increased their long positions to a level that had not been seen in more than 13 months, making them net long. Apart from profit-taking, apprehensions regarding China’s copper consumption and inventory levels also affected the mood.
The SHFE’s warehouse inventory tracker hit its highest point since April 2020. Indicating China’s stagnant consumption despite industrial output exceeding expectations in January or February, rising 7% annually. China’s retail sales increased by 5.5% annually as well.
On the other hand, February’s copper cathode output saw a month-over-month decline. But an increase year-over-year, with a noteworthy increase in cumulative output from January to February. The total amount of copper produced in March increased marginally over February’s output. Even with some smelters undergoing overhauls and lowering their input of raw materials.
From a technical perspective, the market experienced long liquidation as open interest significantly decreased by -22.29% to settle at 2748. At 752.3, Mcx copper prices is presently finding support; a test of 748.1 could occur below this level. Resistance is anticipated at 763.2 on the upside, and a move above it is likely to result in a test of the 769.9 point.