Copper is gaining altitude, with major exchanges reporting record low inventory levels and coronavirus vaccines expected to pave the way for a swift global economic recovery.
Comex Copper traded at $4.2160 per pound on Monday – the highest level since August 2011. Prices have more than doubled since the March crash.
Meanwhile, traders are taking bets [buying calls] on the London Metal Exchange (LME) that prices will hit $12,000 per tonne by December, according to Fastmarkets.
A call option gives the holder the right but not obligation to buy the underlying asset at a predetermined price on or before a specific date. A put option gives the right to sell.
The LME three-month copper rose past $9,000 per tonne on Monday to hit the highest level since September 2011. Other industrial metals such as iron ore have also charted a strong rally over the past few months.
Analysts at JPMorgan recently said that commodities might be in the early stage of a multi-year bull cycle.
Commodity dollars such as the AUD and NZD could benefit from a continued rally in copper, iron ore, and other metals, if any.
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