Hedge funds are shorting London Metal Exchange (LME) copper for the first time since the early days of the outbreak, according to media reports.
Data released by the LME showed that investment funds turned to a net short position in copper for the first time since June 2020. Bearish bets surged after mid-April, with bulls unwinding as pressure on copper intensified after official data showed weak demand in the world’s top consumer.
According to TD Securities, much of this shift could be due to a reconfiguration of trend programmatic trading as copper prices fell.
TD Securities’ trend-following tracker is currently showing that more selling is likely if copper falls below $7,700.