Comex copper down

Comex copper futures closed down 4.2 percent on Monday, pressured by lingering speculative liquidation amid a firmer dollar and concerns over economic growth prospects out of China, sources said.
Copper for July delivery ended down 13.90 cents, or 4.2 percent, at $3.1525 a lb on the New York Mercantile Exchange's (Nymex) Comex division, after dealing in a wide trading band of $3.1150 to $3.3010. Technicians pegged July copper to trade in a wide range, with support seen at last on Wednesday's 7-1/2 week low at around $3.00 a lb, while resistance was seen at $3.40. Spot June fell 13.40 cents to $3.2525 a lb, near the lower end of the session's $3.22-$3.3950 range.
Comex final copper volume was estimated at 16,000 lots, against the 12,618 lots recorded on Friday. Comex rollover from the July contract into September continued to heat up, with first notice day for July delivery just two weeks away.
As of June 16, open interest in July copper fell 1,477 lots to 22,068, while interest in September increased 2,143 lots to 36,490. First notice day for July copper is June 30. "The non-commercial traders in that market are short now, indicating a fundamental change in this market.
The first thing you would ask, is there something going on in China that would lead to the sell-off?" said Darin Newsroom, markets analyst with DTN in Omaha, Nebraska. On Friday, China's central bank said it will raise bank reserve requirements by half a percentage point effective July 5, in an effort to slow the country's rapid credit growth, possibly seen weighing on demand for industrial metals.
Meanwhile, the prospect of another US interest rate hike at month's end amid a chorus of hawkish comments from Federal Reserve officials in the last couple of weeks continued to boost the dollar against the euro.
In afternoon trade in New York, the euro was trading down 0.6 percent at $1.2573. Traders will monitor on Tuesday's May housing starts data due out at 8:30 am EDT (1230 GMT), which could give the market some direction.