11/22/2005

The news from China is having some stabilizing effect on the copper market.

Chinese government agency in charge of metals trading is honoring the

commitments to deliver the Copper against their short position on LME.

During the last several months the global copper markets were under a short

squeeze.  The rumors of a large, deeply in red short copper position were

circulating for quite a while now.

Is this a top in the copper market?  Only the time will tell, but for now the

deliveries against the short position and the increase in the warehouse

inventories will play a very stabilizing role for the market.

This is not a trade recommendation and no one should treat it as such.

Commitment of Traders Reports: Copper