Each and every market fell during May, weighed down by uncertainty and negative sentiment.

There is no need to reiterate all the why’s and wherefores that drove markets lower, very simply, trade issues are the culprit.

Sure the stronger dollar played a role, but it was, we think, a secondary part in the grand scheme of things.

And one can’t help but think that unless / until substantive progress is made, markets will remain under pressure.

The statistics page lays out the bloody mess, and if you get beyond that, you will see that every chart has the May monthly average price at or below its five month moving average.

And to add insult to injury, you also see that inventories for all metals are down significantly from their highs.

As for copper specifically, the May average on Comex came in at $2.7428, down 17.7¢, or 6% from $2.9201 during April, and was of 32¢ or 10% from $3.0640 last May.

The year to date average now stands at $2.8201, off 30¢ or 9.5% from $3.1159 during the first five months of 2018.

And finally, the first chart in this month’s report illustrates the annual average price for copper over the past 50 years or so.

Clearly, copper is at a critical juncture.

Regards,
John E Gross

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