Copper futures surge as short squeeze grips NY market

Wire Or Copper Sky Sun 1711056

“Short spread & futures holders are being squeezed,” said Michael Cuoco, head of hedge fund sales for metals and bulk materials at StoneX Group.

The move was specific to the July Comex contract. The high of $5.026 a pound is equivalent to $11,080 a ton — more than $1,000 a ton above the benchmark contract on the London Metal Exchange. It also pushed the Comex market into an unprecedented backwardation, with the July contract trading as much as 29.25 cents a pound above the September contract.

Traders said the unprecedented squeeze was prompting cargoes of copper to be diverted to the US.

Cuoco said he expected futures traders with long positions to roll them forward to take advantage of the huge backwardation. “These are rich values. We expect participants to take profits off the table or to roll positions forward at these lofty levels,” he said.

(By Jack Farchy, Archie Hunter and Mark Burton)

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