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Dr. Copper's class was back is back in session yesterday as indications of loosening current and future supply inspired selling.

Reports that striking workers are returning to the mines in Peru, combined with the return of law and order to Mongolia's capital (with opposition leaders acknowledging that the recent elections where fair, for the most part...), has provided a fundamental backdrop for committed selling in the futures market over the past 24 hours (see chart).

Copper has remains a fascinating leading indicator for me to analyze. On one hand, copper breaking down assures me that Asian economic growth is slowing, which is ultimately deflationary. On the other hand (supply side), copper's June ascent amplified the reality that this brave new interconnected world cannot absorb supply shocks, which is ultimately inflationary.

At this spot price, copper is breaking down. Class dismissed.
KM