CME boosts margins for copper futures after sizzling rally to record
Adds more details of margins and delivery in pargraphs 6-7, updates prices
By Eric Onstad
LONDON, May 16 (Reuters) -The CME Group CME.O will lift margin requirements for copper futures, which hit record highs this week as investors with bearish positions were squeezed, attracting further buying by speculators.
The rally that has seen CME prices jump nearly 30% so far this year would likely remain on the boil in the short term, including on the London Metal Exchange, analysts said.
The U.S. exchange operator raised the outright margins on copper futures by $500 to $5,000 per contract, effective after the close of business on Thursday, the CME's clearing house said in a notice.
The CME also pushed up margins for spreads of the metal used in the power and construction industries, with the July/August spread jumping by 25% to $500.
Sources told Reuters on Wednesday that the CME rally was partly fuelled by commodity traders Trafigura and IXM seeking physical copper to cover large bearish positions on the CME.
But finding copper that can be delivered on the CME has been tricky because much of LME inventories are Russian origin, which is not accepted on the CME. The U.S. exchange also does not allow metal produced in top refined producer China.
Trafigura was asking producers to redirect material from other destinations to the US, the sources said.
The hefty jump in CME copper prices has outpaced gains on the LME and created an opportunity for traders to buy on the LME and sell on the CME, known are arbitrage trading.
"We expect the Comex premium over LME to narrow as arbitrageurs ship physical units to the US, but this will take time," Citi analyst Max Layton said in a note.
May Comex copper futures HGc1 hit a record of $5.1775 a lb on Wednesday and were down 1% at $4.9225 on Thursday at 1320 GMT.
Analyst Ed Meir at broker Marex said technical signals were not yet showing a peak in Comex copper.
"Although prices came off their highs, they still finished with decent gains, especially in the forwards and thus avoided the washout usually associated with a peak," he said in a note.
The Comex May contract at its peak was equivalent to $11,414 per ton while the LME price benchmark price CMCU3 has risen as far as $10,445.50 a ton and was up 1.2% at $10,340on Thursday.
Reporting by Eric Onstad; editing by Jason Neely, Kirsten Donovan and Michael Erman
Aloqador aktivlar
Eng oxirgi yangiliklar
Javobgarlikdan voz kechish: XM Group korxonalari har biri faqat ijro xizmatlarini koʻrsatadi va onlayn savdo platformamizdan foydalanish huquqini beradi, bu odamga veb-saytda yoki veb-sayt orqali mavjud boʻlgan kontentni koʻrish va/yoki undan foydalanishga ruxsat beradi hamda uni oʻzgartirishga moʻljallanmagan va uni oʻzgartirmaydi yoki kengaytirmaydi. Bunday kirish va foydalanish huquqi doimo quyidagilarga boʻysunadi: (i) Shartlar va qoidalar; (ii) Risklar haqida ogohlantirish; va (iii) Javobgarlikni toʻliq rad etish. Shuning uchun bunday kontent umumiy maʼlumot sifatida taqdim etiladi. Xususan, shuni esda tutingki, bizning onlayn savdo platformamiz mazmuni moliyaviy bozorlarda biror bitimni amalga oshirishga oid maslahat yoki taklif emas. Har qanday moliyaviy bozorda savdo qilish sizning kapitalingiz uchun jiddiy risk darajasini oʻz ichiga oladi.
Onlayn savdo platformamizda chop etilgan barcha materiallar faqat taʼlim/axborot maqsadlari uchun moʻljallangan va unda moliyaviy, investitsiya soligʻi yoki savdo maslahatlari va tavsiyalar; yoki bizning savdo narxlarimizning qaydlari; yoki har qanday moliyaviy vositalar bilan bitim tuzish maslahati yoki taklifi; yoki sizga kerak boʻlmagan moliyaviy reklama aksiyalari hisoblanmaydi
Har qanday uchinchi tomon kontenti, shuningdek XM tomonidan tayyorlangan kontent, masalan: fikrlar, yangiliklar, tadqiqotlar, tahlillar, narxlar va boshqa maʼlumotlar yoki bu veb-saytda joylashgan uchinchi tomon saytlariga havolalar umumiy bozor sharhi sifatida "boricha" taqdim etiladi va investitsiya maslahatini tashkil etmaydi. Har qanday kontent investitsiya tadqiqoti sifatida talqin qilinsa, siz bunday kontentni investitsiya tadqiqotlarining mustaqilligini ragʻbatlantirish uchun moʻljallangan qonun talablariga muvofiq moʻljallanmagan va tayyorlanmaganligini eʼtiborga olishingiz va qabul qilishingiz kerak, shuning uchun unga tegishli qonunlar va qoidalarga muvofiq marketing kommunikatsiyasi sifatida qaraladi. Mustaqil boʻlmagan investitsiya tadqiqoti va yuqoridagi maʼlumotlarga oid risk haqida ogohlantirishimizni oʻqib chiqqaningizga va tushunganingizga ishonch hosil qiling, unga bu yerdan kirish mumkin.
