FX.co ★ Copper Holds Losses on US-China Trade Spat

Copper futures remained just under $5 per pound on Wednesday, following a decline of more than 2% in the previous trading session. The drop is largely attributed to rising tensions between the United States and China, which have cast a shadow over global demand forecasts. In the latest development, President Trump threatened China with an embargo on cooking oil as a counter-move to Beijing's boycott of U.S. soybeans. This follows earlier warnings from the U.S. about significant tariff increases in response to China's new controls on rare earth exports. Despite the tensions, President Trump is expected to meet with President Xi Jinping in South Korea later this month in an attempt to de-escalate the situation. On the supply front, ongoing disruptions in Chile and Indonesia continue to limit global production. Notably, Chilean mining company Codelco reported its weakest monthly production levels in over two decades, and operations at Indonesia's Grasberg mine remain constrained following a fatal incident last month.