MARKET TALK: System Sales Pressure LME Base Metals

A combination of LME stock increases, follow-through systematic sales from last week, and activity ahead of the rebalancing of the Dow Jones-AIG Commodity Index Fund are all pressuring base metals Monday, says Robin Bhar of UBS. The DJ-AIG index will be rebalanced this week after the determination date of January 8. Price volatility and follow-through selling likely this week, Bhar says, with no major US economic data to watch this week. LME copper trades at $5,535 per metric ton, down over 1% from Friday, while nickel trades at $32,100/ton, down over 3% from Friday.