The iPath Bloomberg Copper Subindex Total Return ETN (NYSEArca: JJC) spent a good portion of 2016 as a laggard among commodities exchange traded products, but kicked things into high gear as the year went along.
That theme is continuing in 2017 as the benchmark copper exchange traded product is up nearly 7%, bringing its 12-month gain to over 30%. Data suggest professional traders are enthusiastic about copper adding to those gains.
Copper prices are benefiting as investors anticipate greater demand out of China and increased infrastructure projects under President Donald Trump. Some professional traders are reacting by increasing bullish bets on the red metal.
Industrial metals like copper, nickel, iron and steel have all rebounded in recent months as traders bet on improving global economic conditions would bolster demand for the base metals after prices hit multi-year lows.
Professional speculators have recently been reducing long exposure to gold, silver and platinum, but have consistently boosted long wagers on copper over the past several weeks.