Commodities: Copper

Commodities were lower overnight however again there was a lack of conviction to the move, it felt more orderly than panic driven implying to MM that we shouldn’t be shaken out of our bullish stance towards commodities in our Flagship Growth Portfolio. For copper, a test of $US400/lb now seems likely which would translate into a move in our preferred…

The combination of a strong $US and China concerns sent copper prices down 4.5% last week, not a huge move in the scheme of recent volatility. MM has a similar view towards this industrial metal as we have towards the $US:

Copper is a fascinating commodity / industrial metal because it not only largely dictates the price of its producers such as OZ Minerals (OZL) but also because it is used by many as a leading indicator of global economic strength. The strong recovery over the last few weeks implies to MM that the economy and subsequently bond yields is poised for another leg up.