US copper futures finished Friday at a two-month low, but backed away from earlier session lows as the dollar slipped in response to weak September jobs data that raised doubts about the economic recovery. Copper for December delivery ended down 5.55 cents, or 2 percent, at $2.6815 a lb on the New York Mercantile Exchange's COMEX division.
Lowest level on a settlement basis since July 31. Range from $2.64 to $2.7250. COMEX estimated futures volume at 24,247 lots by 1 pm EDT (1700 GMT). Final Thursday volume at 24,520 lots. Open interest down 731 lots at 115,205 contracts open as of October 1. Copper dragged down by economic recovery concerns after data showed US employers slash a deeper-than-expected 263,000 jobs in September, pushing the unemployment rate up to 9.8 percent.
Weak unemployment data, coupled with surprise dip in Institute for Supply Management manufacturing index, unexpectedly weak September Chicago Purchasing Managers Index data, and 23 percent drop in auto sales equate to artificial recovery - Michael Pento, chief economist with Delta Global Advisors. "The V-shaped recovery will be a one-quarter wonder. We'll see a Q3 print of around 3 percent." - Pento.
Copper backed away from session lows with help from negative reversal in the US dollar against the euro, which tends to make dollar-priced metals more attractive to buy for non-US investors. First drop in new orders received by US factories in five months undermines economic recovery optimism. London Metal Exchange (LME) copper stocks dipped 625 tonnes to 345,425 tonnes on Friday.
COMEX copper warehouse stocks added 121 short tons to 53,604 short tons as of Thursday. Delayed copper shipments from a worker stoppage at northern Chilean port of Antofagasta seen offering mild support. BHP Billiton to seek Chilean government mediation to reverse a worker decision to strike at its mid-tier Spence copper mine. Workers likely to down tools on October 8. LME copper for three-month delivery shed $106 by the close to end at $5,879 a tonne.
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