US copper futures at the New York Mercantile Exchange's Comex division rose at the open on Wednesday, with support stemming from a weaker dollar. Active May copper gained 7.10 cents, or 1.8 percent, to $3.9615 a lb by 10:14 am EDT (1414 GMT). Range was $3.8520 to $3.9475.
Futures volumes were estimated at 9,652 lots by 9 am. Strong technical momentum and renewed losses in the dollar vs euro propelling prices back up near the $4.00 level, trader said. Dollar down on worries about a severe US economic downturn, upping the chances for a substantial 50 basis point rate cut later this month from the Federal Reserve.
The International Monetary Fund's revised global growth figures showed a projected slowing of growth across the world, with the United States set to grow 0.5 percent in 2008 and 0.6 percent in 2009, compared with 2.2 percent growth in 2007. The euro traded at $1.5728, up 0.2 percent from Tuesday, but down from a session high of $1.5743 in overnight trade.
Fundamentally, dwindling copper inventories in global warehouses and potential supply disruptions in key producing regions provide firm underlying support. Comex stocks were flat at 11,931 short tons on Tuesday.
Chilean subcontract workers set to launch new strikes if top copper producer, Codelco, does not meet their demands for better working conditions. Supply-side risks remain at Grupo Mexico's Cananea copper pit. Xstrata PLC is rethinking its expansion in Argentina now that the government has imposed stiff export duties affecting some of the world's largest mining companies.
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