Reuters commentary (May 20)

LME Market - LME base metals futures ended mixed on Friday, with traders saying that a stronger US dollar will push copper prices down to below US$3,000 per tonne. "Usually investors will end up before the weekend. The clear part is also no exception today. Coupled with the rise in the U.S. dollar, copper has triggered multiple stop-loss orders in the downturn. “An intraday trader stated that the U.S. dollar rose to a new high during the year against the major European currencies and hit 1.2555 against the euro. The high point since last October. Today's trading was light for most of the time except for late afternoon, highlighting the current market's uncertainty about the future. Traders said that investment funds persist in their positions, but large speculators still hold a large number of positions. People said, "At present, people are not sure about the trend of the market. This has been the case for the past few months." Similarly, investment funds may be shifting from commodities to basic metal manufacturers. On Friday, the British hedge fund company Wessex Asset Management stated that it Optimistic about base metal manufacturers as strong demand is expected to drive the industry's future growth, profitability and M&A activity. Executive director Wessex Asset Management stated that strong demand from China and India Push up prices. Traders said that the long-term prospects of metals tend to downshift, but lower inventory indicates that investors are reluctant to go short, because of concerns that they can not cover the site. Three-month copper fell, but in the open outcry period to close at Above the low of $3,002, it fell by $26 from Thursday's consolidated trading. The three-month aluminum weakened before hitting a resistance level of $1,750 but failed to close at 1,722 at the close and fell by $12. COMEX Copper--- -- Copper futures on the New York Mercantile Exchange (COMEX) closed higher on Friday, reversing earlier losses, as speculators ignored the dollar’s ​​rise to a seven-month high against the euro and bought at the close of the market. Indicator July copper closed higher 1.20 cents at $1.3750 a pound; intraday trading at 1.3530-1.3790. A trader said, "There has been some short covering. I think everyone thinks that copper will fall sharply today, but this situation is not Appeared, so investors re-purchased. "The market has been paying close attention to the support level of the July contract of 1.35 US dollars, and the support level of about 3,000 US dollars per ton of copper for the London Metal Exchange (LME). However, both markets have maintained the above support. Above the spot. May spot copper rose 1.70 cents higher in May. US$1.4750 per pound. Other contracts are trading up 0.50 to 1.00 cents. The COMEX copper futures volume is estimated at 11,000, which is higher than Thursday's 9,620.