US copper futures ended lower on Friday, as currency-related sales weighed on prices after data showing the US economy lost a fewer-than-expected 345,000 jobs in May fueled a sharp rally in the dollar. Copper for July delivery shed 1.70 cents to close at $2.2840 a lb on the New York Mercantile Exchange's COMEX division. Session ranged from $2.2320 to $2.3340.
COMEX estimated futures volume at 27,789 lots by 1 pm EDT (1700 GMT). Final volume on Thursday hit 27,182 lots. Open interest dropped 2,170 lots to 111,957 contracts open as of June 4. Copper down in profit-taking retreat from initial upside reaction to US May payrolls data. Firmer dollar and fund money flows out of the broader commodity complex weigh on values - Bill O'Neill, partner of LOGIC Advisors in Upper Saddle River, New Jersey.
US May non-farm payrolls fell 345,000, compared with a consensus forecast of 520,000. April's figures were revised to show a smaller fall of 504,000 from an initial estimate for a decline of 539,000. The jobless rate rose to 9.4 percent. The better-than-expected payrolls report drove the dollar up against the euro, pressuring dollar-priced commodities lower - Pat Donnelly, senior broker with Peak Trading Group in Chicago.
A stronger US currency makes dollar-priced metals less attractive to non-US investors. Copper, as well as the broader commodity complex, seen bouncing back next week as recent dollar rally expected to lose steam - Donnelly. London Metal Exchange warehouse stocks broke below the 300,000-tonne level after shedding 3,225 tonnes on Friday. Cancelled warrants metal set to leave warehouses - grew to 34,825 tonnes from 34,600 tonnes the previous session.
LME stocks draw was offset by a 51 percent build in copper warehouse inventories in Shanghai. COMEX copper stocks edged up 4 short tons on Thursday, bringing total warehouse levels to 56,818 short tons. Europe's largest copper producer Aurubis expects a rebound in copper demand in coming months - CEO Bernd Drouven. LME copper for three-months delivery closed down $35 at $4,990 a tonne.
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