Copper Futures Correct and the Bears Come Out of Hibernation Too Fast

Is the rally in copper over? Copper prices broke a six-year downtrend trend late last year and have recovered around a third of the prior decline. Futures have pulled back in recent sessions and the financial media has rushed in to put bears on TV for sound bites. The commentators and "analysts" they selected cited a rise in LME warehouse stocks as if one statistic is equals a complete supply/disposition analysis.

My eyes rolled. Sorry, but when I first graduated from university I landed a job at a commodity consulting company in New York. Commodities had entered a secular rise from growing global demand, stagnant supplies and a number of supply shocks. Maybe you remember the poor anchovy crop that boosted the price of soybean meal? The Russian wheat deal? The freeze of the oranges in Florida? The loss of half the coffee crop in Brazil? The rise of OPEC?...241 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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