New York Copper Squeeze Eases as Exchange Hikes Margins
- Some brokers start to restrict client trading in Comex copper
- July contract is lower but still elevated as stress continues
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A record squeeze in the New York copper market eased somewhat on Friday, as CME Group Inc. raised trading margins and copper prices on the London Metal Exchange rallied to narrow the gap between the two markets.
Comex copper for July delivery has dropped around 1% in two sessions from an all-time high for a most-active contract on Wednesday, while LME copper for delivery in three months rose almost 2%. That meant the spread between the two contracts, which had spiked to more than $1,000 a ton on Wednesday, had narrowed to about $400 by lunchtime in Singapore on Friday.