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What is LME Stock What is the impact of LME stocks on base metals how to read LME stockss

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Posted by : Nifm
9 May, 2015, 1:22 PM
London Metals Exchange is commodity exchange where they deals in metal futures. Lots of metals Contracts on the exchange include aluminum, copper and zinc, lead, nickel. LME stock are very important for base metals trader because their impact high for base metals. The London Metal Exchange (LME) is the futures exchange for base metals trading. It is the world’s largest market in futures contracts on base and other metals. The change of stock is very important for base metals traders. LME stock plays an important role in commodity trading, specially for future trading. Stock directly give you a signal about commodities demand and supply. Stock of commodities, with low inventories typically leading to more volatile future prices and increasing the risk of a “Stock End”. Commodities Calls collects this data from a various sources and present it for the your convenience. LME stock data of commodities is used on the relationship between inventories and commodity futures risk premiums.   The LME stock data gives traders to predict better the future price movements or manage the subsequent risk. Traders must regularly check to find out the official price data to better inform their investment outlook, which has a flow on effect, impacting relevant financial and physical commodities markets worldwide.   For Example: If Copper stock is less than previous day that means it is good for the commodity and vice-versa. If the stocks coming everyday short that means good demand in spot market go long for a good period (vice-versa).  

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