US copper slips

US copper futures ended down, but well off their session lows, on Friday as a stronger tone on Wall Street helped defend the metal against a dollar rally and fears of a US-led global recession. Copper for December delivery lost more than 3 percent to close at $1.8290 a lb on the New York Mercantile Exchange's COMEX division.
The session range ran from $1.7330 to $1.91. Copper's technical parameters in place, defined as Monday's low of $1.6265 and Thursday's peak of $2.1720 - HeritageWestFutures.com analyst Ralph Preston. For the month, the benchmark December contract registered a decline of more than 36 percent. COMEX estimated final futures volume at 20,438 lots, versus Thursday's 19,713 lots. Open interest edged up 43 lots to 79,548 open contracts as of October 30.
Copper down hard in early business on overnight Asian selling. Market focus will continue to be on equities - Frank McGhee, head metals trader with Chicago-based Integrated Brokerage Services LLC. "If you see stocks continue to firm, I think you're going to see the copper just grind its way up. It may be susceptible to some breaks, but will ultimately move back into the lower $2.00 to $2.15 range" - McGhee.
Major US indexes rose Friday, boosted as the financial sector advanced on further signs that the credit market was thawing. Copper losses tied to recession fears reinforced by data showing a steep drop in business activity in the US Midwest and a record decline in consumer confidence during October. The bleak data helped give a boost to the dollar, which was on track for its biggest monthly gain against a basket of currencies in more than 17 years.
Metals caught between offsetting factors - concern about a US-led global recession and production cut-backs - MF Global analyst Edward Meir. Chile's Codelco, the world's largest copper producer, said its copper output fell 8.2 percent in the first nine months, citing a strike by workers and falling ore grades.
China's third interest rate cut in six weeks will be much less of a boost to commodities demand in the world's fastest-growing consumer of raw materials than a hefty infrastructure spending program. London Metal Exchange copper stockpiles surged 6,775 tonnes to 230,650, their highest level since March 2004.
Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell to 24,788 tonnes in the week ended Thursday from 31,053 tonnes the previous week. COMEX copper stocks were even at 9,892 short tons as of Thursday. LME copper for three-month delivery settled at $4,099 a tonne, down from $4,210 at the close on Thursday, but above a session low at $3,832.