Funds Cut Copper Bets by $20 Billion as Bull Trade Unravels

By Mark Burton – Bloomberg

From a fundamental standpoint, a looming crunch in supply is likely to give the remaining investors confidence to stick with their bets, he said. While demand is weak and the overall market is in surplus, there are growing expectations that smelters soon will be forced to cut output following a collapse in processing fees.

“That’s certainly sufficient to keep the investor positioning fairly sticky and, unless the macro deteriorates from here, I don’t envisage that we’ll get a massive liquidation of long positions,” Major said. “The setup remains constructive, and I think the market’s going to look through this weakness, consolidate in the near term and wait for those physical catalysts.”