Salient to Investors:

Copper traders are bullish for a third consecutive week on the fastest expansion in Chinese manufacturing in two years. ETF Securities said $28 million went into its ETFS Physical Copper ETP last week, the most since its introduction in 2010. Barclays said China consumes 42 percent of the world’s copper, Europe 18 percent, and North America 11 percent.

Carole Ferguson at SP Angel Corporate Finance said copper demand is obviously returning, with good numbers out of China and the US in a recovery trend. Economists expect China expansion to accelerate in the first 3 quarters of 2013.

Barclays says 2013’s copper glut may almost double as output rises faster than consumption, most of which will come in Q4. Goldman Sachs said prices will climb to $9,000 in 6 months.

Hedge funds et al remain more than twice as bullish as the average over the past 5 years.

The IMF expects global growth of 3.5 percent for 2013, 0.2 percent for the euro area.

Barclays and Rabobank Intl said demand will outstrip supply in 2013 in platinum, palladium and tin, and corn, wheat and cocoa will see shortages in the 2012-13 season.

Georgette Boele at ABN Amro favors cyclical commodities with tighter supply and demand balances.

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