US copper futures ended up Friday in sympathy with surrounding strength in the broader commodities complex, but lagging price action comparative to the rest of the group may suggest further losses next week, analysts said. Copper for September delivery ended up 2.15 cents at $3.74 a lb on the New York Mercantile Exchange's COMEX division.
The session range spanned from $3.7190 to $3.7990. Final estimated volumes reached 11,653 lots, compared with Thursday's official count at 14,516 lots. Open interest fell 2,125 lots to 106,162 open contracts as of July 10. Copper's inability to keep pace with the stronger gains in the energy and broader metals markets suggests a disconnect may be taking place with the price of copper - Ralph Preston, futures analyst with HeritageWestFutures.com.
"The disposition in the copper market is definitely slanted to the downside after the failed breakout last week" - Preston, referring to the red metal's spike above $4 a lb.
In other metals, aluminium for three-month delivery on the London Metal Exchange held around record highs, while zinc surged to six-week peaks on worries over supply shortages from China. Lead jumped almost 5 percent to a five-week high at $2,080 a tonne.
Oil prices rose above $147 a barrel for the first time ever on Friday. In currencies, the dollar slumped against the euro amid worries about the US financial sector after a report said the US government was considering taking over mortgage agencies Fannie Mae and Freddie Mac if their situation worsens.
The euro hit an intraday high at $1.5947, its highest level since April 23, according to Reuters Data. A weaker American currency makes dollar-denominated assets like copper more attractive for non-US investors. Chinese weekly inventory data was in line with market expectations but continued to show sluggish demand from the world's top copper consumer.
Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 5 percent to 38,150 tonnes in the week ended Thursday, from 36,175 tonnes the previous week. London Metal Exchange (LME) copper warehouse stocks fell by 725 tonnes to 124,125 tonnes on Friday. COMEX copper stocks slipped 641 short tons to 9,037 short tons on Thursday. Copper underpinned by impending miner strike at Freeport-McMoRan's Cerro Verde copper pit in Peru. LME copper for delivery in three-months ended up $40 at $8,270 a tonne.
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