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Friday, November 03, 2006

Copper Contradiction

Today, Bloomberg is challenging one of the laws of physics -- that two opposites can't occupy the same space at the same time.

In this corner, presenting the BEARISH copper viewpoint, Bloomberg's story on the Web about copper ...

Copper Futures in Shanghai Fall to Two-Month Low as Stocks Rise

Nov. 3 (Bloomberg) -- Copper futures fell to a two-month low in Shanghai, extending declines driven by rising global inventories and speculation that demand for the industrial metal may weaken due to slower U.S. economic growth.

Stockpiles of copper, used to make pipes and wiring, rose 3.2 percent yesterday to 139,475 tons, the most held in London Metal Exchange warehouses since May 2004, according to data released by the exchange. Most of the copper was in South Korea, located near China, the world's largest consumer.

And in this corner, presenting the BULLISH copper viewpoint, Bloomberg's story on Bloomberg News (not on the Internet -- you need a Bloomberg subscription)...

Shanghai Copper Stocks Fall 12.6 Percent to Lowest Since April

Nov. 3 (Bloomberg) -- Copper stockpiles in Shanghai Futures Exchange warehouses fell 12.6 percent this week to 30,410 metric tons, the lowest in more than six months. Aluminum stockpiles also decreased.
Deliverable stockpiles of copper fell by 4,386 tons from 34,796 tons based on a survey of six warehouses in Shanghai, the exchange said today on its Web site. This is the lowest total since the 29,843 tons reported on April 13.

Do you see what I'm seeing? Two completely different set of facts ... published on the same day ... by the SAME news service.

If Bloomberg can't figure it out, how are the rest of us supposed to figure it out?
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