After the short market prompted traders to rush to ship copper from other regions to the United States.WinningvideopokerstrategyThe price of copper futures in New York hit a record high.
After a sudden surge of more than 7 per cent this week, the Comex copper futures contract for July delivery reached a record premium over later delivery and was at an all-time high over other commodity exchanges around the world.
Michael Cuoco, head of sales at the StoneX Group Metals and bulk Materials hedge fund, said short spreads and holders of futures contracts were being forced to position.
The surge was concentrated almost entirely on Comex's most actively traded July contracts.
Copper for July delivery in Comex rose as much as 4% on Wednesday.Winningvideopokerstrategy.2% to 5 per poundWinningvideopokerstrategy. 0855 US dollars, more thanWinningvideopokerstrategyThe most active contract reached the previous high in March 2022. The new high for copper delivery in Comex is equivalent to $11212 a tonne, more than $1000 higher than the latest benchmark price on the London Metal Exchange (LME), which also hit a two-year high.
Jia of East Wu Jiuying said the surge in contracts in July was partly due to forced positions on traders engaged in so-called reverse arbitrage trades.