How to interpret and trade with LME inventory data

#1
>> LME Inventory: Copper +125, Aluminum -5875, Nickel -666, Zinc +4025, Lead -600, Tin +105


Can anyone help me make sense of this data. From what I have noticed, at times stock reacts v sharply to data (i.e. movement as soon as data is released) but quite a few times the data has had no impact on the price (at least on the intraday basis).

How do I interpret LME inventory data?

thanks!
 
#2
before the actual data is out, there is an forecast of what the inventory level might be. This forecast is done by analysts.

If the Actual data is ahead of the forecast or below it, then there is sharp movement in the commodity price. If the Actual data comes up close to the expected figure, the movement is very minimal.

there is a nice calendar at http://www.forexfactory.com/ with the forecast and impact level to each inventory data.

example :

Copper inventory forecast is -250; actual report comes as +125. Interpretation = there is more inventory than expected. "more stock than demand"...In this scenario, Copper price would react sharply on the downside.
 
#3
loke4300
Member
Re: How to interpret and trade with LME inventory data

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before the actual data is out, there is an forecast of what the inventory level might be. This forecast is done by analysts.

If the Actual data is ahead of the forecast or below it, then there is sharp movement in the commodity price. If the Actual data comes up close to the expected figure, the movement is very minimal.

there is a nice calendar at http://www.forexfactory.com/ with the forecast and impact level to each inventory data.

example :

Copper inventory forecast is -250; actual report comes as +125. Interpretation = there is more inventory than expected. "more stock than demand"...In this scenario, Copper price would react sharply on the downside.
__________________
Regards,
Loke4300
How/Where to find inventory for different base metals on this page....i mean on WEB Page
 

Tradejack

Active Member
#5
How/Where to find inventory for different base metals on this page....i mean on WEB Page
try kitco.com&basemetals.com for inventory data and live charts for metals.also u should follow doller price.chinese metal data.&weekly reports at moneycontrol.com/commodity
 

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