tag:blogger.com,1999:blog-2632357035930457754.post2831990034421927288..comments2024-02-06T09:43:58.911+01:00Comments on Correlation Economics: Update: Copper Contango Experimentkatchumhttp://www.blogger.com/profile/16885231288918100897noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2632357035930457754.post-86051875475222867962013-03-15T13:37:59.530+01:002013-03-15T13:37:59.530+01:00Since copper inventory is high, I think the Contan...Since copper inventory is high, I think the Contango indicates that investors who have bought call options above the cash price expect the price of copper to rise in the future, but may be realising losses in the short term. <br /><br />Personally, I think the high levels of copper inventory held in LME and COMEX warehouses indicates that demand from China for industrial materials is weak due to the low growth in European GDP.<br /><br />When the European economies return to higher growth levels, that will feed through to China, and the Contango will reverse. The bad news is that the recovery in Europe is not expected to start until Q3 2013.Anonymousnoreply@blogger.com