Hedge funds and large speculators have lifted their bullish copper positioning to a five-month high, capitalizing on a historic price surge driven by tightening global supply and a recovery in Chinese demand.

According to U.S. government data for the week ending May 12, money managers increased their net-long positions by 16% to 73,523 contracts. This marks the strongest bullish sentiment in 20 weeks, occurring just as COMEX copper futures in New York rallied to an all-time high of $6.7160 per pound.

The aggressive shift in market positioning reflects a convergence of structural and geopolitical factors, in which growing anxiety over tight global inventories has far outweighed fears that elevated energy costs might dampen economic activity. Additionally, ongoing regional conflicts, including those involving Iran, have intensified fears of supply disruptions, further bolstering the commodity’s upward momentum.

As a critical cyclical growth indicator and a highly supply-sensitive asset, copper’s record-breaking run demonstrates that investors are leaning heavily into the bullish narrative despite historically elevated prices.

End Notes

Source: https://www.hedgeweek.com/hedge-funds-ramp-up-bullish-copper-bets-as-prices-hit-record-highs-on-supply-fears/