Post by
jcw604 on May 22, 2021 11:20am
Copper price dropped from the peak of 4.76 to 4.48
I have been monitoring a high flying copper stock and noticed that it dropped recently, also copper price. The copper market has future that shows backwardation. I.e. the future price is much weaker than their spot price. I will do more study. The Vanadium market is too small to provide these information. I am taking an assumption that these base metals all tracks one another, but I could be quite wrong. However, with the lack of information, the market needs to find something else to predict a reasonable SP for LGO. It may go to these other market.
Comment by
jcw604 on May 22, 2021 11:34am
I was taking the backwardation thing from someone else's comment to find out that it is not true now after doing some more research. It might be true on the day he commented, but probably not true now. It might be that the future fluctuate less than the spot price and averages the prices of previous days and created a short term backwardation. Don't know for sure.