Great time to buy, page-70

I have been trying to get my mind around what the Bonded Warehouse stocks tell us.

Who owns the copper that is stored in the bonded warehouses?

It seems its owned by futures traders who bought warrants and prefer to buy the copper and store it rather than book a loss when the prices at the time they are contracted to buy are lower than the price they have contracted to pay.

Who owns the bond stores?

Not the futures exchange. They are owned by enterprises who are in the storage sector.

What part does the Futures Exchange's play?

Their roll is licensing storage warehouses to facilitate seemless storage solutions for their traders where the ownership of physical copper stocks can change hands without having to be shifted from one store to another.

When do stocks rise.

When the spot price is lower than it was forecast to be at the time the warrant contract was made.

What do they tell us about real world stocks.

Probably not much. I imagine the copper processors inventories, commodities traders concentrate inventories, completed copper component inventories and inventories of products that contain copper components would dwarf what the futures punters are involved in.

In the real world commodities traders facilitate price certainty for producers and and users of commodities by organising back to back agreements between buyer and sellers. I doubt that any of this copper ends up in a Futures exchange warehouse.

What do futures exchange approved bonded warehouse stocks tell us?

Rising stocks tells us the Cu price is falling.

Falling or no stocks tell us the Cu price is rising and traders with warrant obligations to buy are selling at a profit into the real world spot market It seems.

“Copper stock data is no longer important for us to assess market supply and demand,” said Zhang Kaimin, a purchasing manager at Hubei Shidai Refined Copper Technology, a copper rod maker that uses around 10,000 tonnes of refined copper a month.“Spot supply is plentiful in the market and it is easy to source material as long as you pay a good price,” said Zhang, who booked some cargoes in early August."

"up 8% ATM apparently on copper rises and potential for rates falls."

or could the Shorter have thrown in the towel and added to the buy side over the last 4 days.

The short position rose to 6.6m on Monday after falling to 6.5m on Friday but importantly there were no gross shorts yesterday?????.



No gross shorts reported.


Friday 3.2m sold at a VWAP of 5.7c last four days total sales on ASX 12 m.