CFTC: Speculative net long positions in COMEX copper futures rose by 1,443 contracts to 24,780 contracts for the week ending May 13th.

CFTC: Speculative net long positions in COMEX copper futures rose by 1,443 contracts to 24,780 contracts for the week ending May 13th.

Speculative interest in COMEX copper futures has shown a significant increase, with net long positions rising by 1,443 contracts to 24,780 contracts for the week ending May 13th, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) [2]. This uptick in speculative long positions indicates a growing optimism among large speculators and hedge funds about the future direction of copper prices.

The increase in net long positions comes amidst a volatile copper market that has been influenced by tariff-related price movements. In April 2025, copper futures on the COMEX experienced significant price swings, with prices rising to a record high of $5.4150 per pound on March 26 before falling to a low of $4.0740 per pound on April 7. The Trump administration's tariff announcement on April 2 caused the price to plummet, but the market has since recovered, with prices near the $4.60 level on May 16, 2025 [1].

The COMEX futures market has outperformed the London Metals Exchange (LME) forwards, reflecting the underlying global demand for copper and the impact of tariffs on the international copper market. While the LME forwards did not reach new highs in late March 2025, the COMEX futures surpassed the May 2024 peak, indicating a divergence in price movements [1].

The long-term trend for copper remains bullish, with both COMEX and LME futures showing higher lows and higher highs. The potential of a U.S.-China trade deal could further lift copper prices, as China is the leading refined copper-consuming country. If the Chinese economy grows, demand for copper is likely to increase, supporting the bullish trend [1].

The copper ETF product (CPER) tracks the futures and has shown strong performance, rising 20% from $25.65 to $30.79 per share over the same period as the July COMEX copper futures rally. The CPER ETF is a popular choice for investors seeking exposure to copper without the need to hold physical metal or engage in futures trading [1].

In conclusion, the rise in speculative net long positions in COMEX copper futures suggests that investors are increasingly optimistic about the future price of copper. The volatile market, influenced by tariffs and trade policies, continues to present both risks and opportunities for investors. The long-term bullish trend for copper remains intact, supported by strong fundamentals and potential growth in demand.

References:
[1] https://www.barchart.com/story/news/32442684/can-copper-reach-new-highs
[2] https://www.capitalmarket.com/markets/news/commodity-mid-session-news/commodities-buzz-copper-net-speculative-longs-gain-from-two-month-low/1598508