Comex copper slips

US copper futures settled a bit lower on Friday, consolidating in a higher range following Thursday's rally as some early morning profit-taking and arbitrage selling gave way to short-covering later in the day, dealers said. "We held the gains made yesterday and the market's ability to climb off of today's lows and settle near unchanged looked technically positive going ahead," said one.
Benchmark March copper at the COMEX division of the New York Mercantile Exchange ended 0.25 cent lower at $1.4225 a lb., just off the top of its $1.4080 to $1.4250 trading range.
Spot February lost the same to close at $1.4675, while back-month contracts finished 0.20 to 0.60 cent lower. COMEX estimated final copper volume was at 12,000 lots, well off the 22,864 lots recorded on Thursday.
"The locals tried to knock the market down this morning and again, they just had to cover at the close," said one floor source.
Dollar fluctuations against the euro continue to be the focus for New York copper traders as a declining dollar usually boosts investments in dollar-denominated assets like copper for overseas players. On Thursday, copper futures finished sharply higher, driven mostly by short-cover buying and fund buying amid the dollar's steep decline against the euro, after data showed a smaller US trade deficit in December, which failed to ease concerns about structural problems in the US economy.
Midafternoon in New York, the dollar was trading nearly unchanged against the euro at $1.2875, up a shade from Thursday's late quote at $1.2873.
COMEX rollover from the most-active March contract into May was heating up, with first notice day for March delivery just two week away, dealers said.
Open interest in March copper slipped 115 lots to 39,609 lots, while that of May copper rose 3,387 to 25,251 lots.
By rolling forward, speculative players reposition their holdings in futures to avoid taking actual physical delivery of copper when delivery begins on February 28.
Three-months copper on the London Metal Exchange closed Friday at $3,065 a tonne, and continued to climb in aftermarket trade, quoted at around $3,077.50. Thursday's late London kerb close was at $3,053.