Reported 8 months ago
Spot copper prices in New York are once again trading at a significant premium to later-dated futures, creating pressure on short positions after a recent historic squeeze. The July-delivery Comex copper is at a 7.4 cent-per-pound premium to the September contract, indicating a supply shortage. Traders are facing challenges in finding and delivering specific copper brands to settle positions. The re-emergence of steep backwardation signals that many short-sellers have yet to cover their exposure, potentially leading to further pressure and losses.
Source: YAHOO