Commodities: Copper
The story is played in reverse between copper and leading Australian producer OZ Minerals (OZL) with the miner roaring ahead over the last 12-months. MM is a fan of OZL as the business continues to kick goals on the operational level but we’ve stood aside of late as we believed the stock simply became overpriced. However with OZL already over 20% below its May high our interest is picking up, at this stage MM likes OZL back under $20.
Similar to oil major industrial metal copper reclaimed some lost ground last week after its significant pullback since mid-May, at this stage we’re not convinced this economic indicator has bottomed but we are looking to gain exposure in the coming months e.g. OZ Minerals (OZL).
Copper reversed early strong gains overnight illustrating the strong influence from FX on the commodity markets, as we’re calling the $US higher the read through is copper will at least struggle short-term.
