Group 1 - Cocoa futures have risen for the third consecutive trading day, with the most active contract increasing by 1.1% to $8,856 per ton [1] - The cumulative increase over the past three days is approximately 7% [1] - The decline in U.S. inventories indicates tightening supply, while shipments from the largest producing country, Côte d'Ivoire, continue to decrease [1]

Core Viewpoint - Continuous short covering is observed, raising questions about whether copper prices can sustain their upward trend. A strong dollar may exert pressure on copper prices, but signs of tightening supply are expected to provide long-term support for the market [1] Group 1 - Short covering in the market is ongoing, indicating potential bullish sentiment for copper prices [1] - A strong dollar could create downward pressure on copper prices, complicating the market outlook [1] - Signs of tightening supply are emerging, which may offer long-term support for copper prices despite short-term challenges [1]

Core Viewpoint - LME copper prices rose over 1% due to a weaker dollar and concerns regarding issues at a major mine in the Democratic Republic of Congo [1][3]. Group 1: Market Performance - On May 23, LME three-month copper closed at $9,610 per ton, up $109.50 or 1.15% [1][2]. - Other base metals also saw price increases, with three-month aluminum up 0.31%, zinc up 0.15%, lead up 1.07%, nickel up 0.65%, and tin up 1.36% [2]. Group 2: Economic Factors - The initial decline in base metal prices was influenced by the announcement of a 50% tariff on EU goods by the U.S. [3]. - A drop in the dollar index to a three-week low made metals priced in dollars more attractive to buyers using other currencies [3]. Group 3: Supply Concerns - Concerns over the Kamoa-Kakula copper mine in the DRC, which is one of the largest copper mines globally, have contributed to rising copper prices [3]. - Recent seismic activity at the mine has led to a suspension of underground operations, potentially impacting annual production plans [3]. - LME copper inventory decreased by 8% to 164,725 tons, while COMEX copper inventory increased by 3% to 174,607 tons [3]. Group 4: Spot Market Conditions - The spot price for copper remains at a premium to LME three-month prices, indicating tightening immediate supply, with the price difference reported at $32 per ton [4].