Copper Forecasts Revised Higher

COPPER AND CHILE

• Goldman Sachs are the latest to adjust their Copper forecasts, revising their estimates up to 12-month target of $10,500/t, comfortably north of the record set in 2011. Citi copper strategists also cemented their bullish outlook revising their predictions to the five-figure mark.
• The bellwether commodity checks all the right boxes at the moment with vaccines being rolled out, economies on the mend, and scope for use in green technologies.
• A further 1.7% of gains for copper futures lends further support to CLP in early trade. USDCLP opening 0.5% lower to new most recent lows of 708.52 with 693 remaining the most important downside target/level.
• To err on the side of caution, it is worth noting Hacienda have now sold $1.66 billion as of yesterday and therefore if they aim to stick to the guidance of max $2 billion per month, their influence will be much more muted next week, especially due to the counter BCCh purchases.