MARKET TALK: Aluminum To Rise Above $3,000; Short Squeeze

LME aluminum futures likely to rise above $3,000/ton in near-term: possible short squeeze by hedge funds, says trader at Japanese trading house. Adds "huge" open interest on December, January prompts, says hedge funds most likely the market participants buying call options. "People have to expect the backwardation to widen in the futures." LME 3-month now +$9.50 at $2,747/ton; LME 15-month at $2,477/ton. Trader says contract to easily break $2,800, possibly within days; then, "the market will easily touch the $3,000 level."