How to interpret and trade with LME inventory data

Discussion in 'Commodities' started by speedmetal78, Apr 6, 2010.

  1. speedmetal78

    speedmetal78 New Member

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    >> 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!
     
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  2. loke4300

    loke4300 Member

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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.
     
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  3. hyraj

    hyraj Member

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    How/Where to find inventory for different base metals on this page....i mean on WEB Page
     
  4. Tradejack

    Tradejack Active Member

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    U can try kitco.com and basemetals.com for inventory data&live charts for metals
     
  5. Tradejack

    Tradejack Active Member

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    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
     
  6. rishikesh_m

    rishikesh_m Member

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    Can you provide the link for exact page where this data is available on forexfactory ?

    I have heard that there is a also a weekly COT report on different commodities and your ability to read the COT report accurately can make a huge difference in your trades.

    Thank you loke4300
     

  7. piyush08

    piyush08 Active Member

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    what time IST does data come out for base metals ??
     
  8. rishikesh_m

    rishikesh_m Member

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    it comes out at 9 am GMT but i get a feeling it is updated much later on kitcometals.com.

    Here is a interesting chart.

    Notice how copper inventory starts dipping around 19th Dec last month

    http://www.kitcometals.com/charts/lmewarehouse.html


    Look at the upmove in copper since 19th Dec.

    [​IMG]
     
    Last edited: Jan 15, 2012
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  9. piyush08

    piyush08 Active Member

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    so inventory levels worked like a charm this time.. but does it work consistently ??
     
  10. Velocity

    Velocity New Member

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