Sector Focus 

Copper: topped out?

Copper: topped out?

Here are a couple simple observations about the price of raw materials. One, correctly calling the price of a metal shouldn’t feel simple; two, the rules of supply and demand should prevent the price of a commodity from continually moving in one direction. But ask nearly anyone in the mining world right now, and the view on copper is bullish. Net futures contracts for the metal are currently at a multi-year high, exchange traded product inflows are surging, and the large diversified majors are all beefing up their production commitments for 2018 and beyond. Even Glencore (GLEN), habitual contrarian of the mining world, is banging a drum made of the red metal.

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