Comex copper futures closed slightly higher on Tuesday in light trading, recapturing some of Monday's losses, with little long liquidation to lend pressure, traders said.
"We were trading off London. There wasn't much paper in there today," said one floor trader, referring to the New York copper-trading pit. Benchmark December copper on the New York Mercantile Exchange's Comex division settled 0.50 cent higher at $1.2815 a lb. Trading ranged from $1.2750 to $1.2930.
Spot October was 0.65 cent firmer at $1.2865 a lb. Comex estimated the day's copper volume at 11,000 lots. Copper futures opened firmer and continued higher after crude oil prices slipped a bit from a record peak of $55.67 on Monday.
Traders said the upward spiral in oil prices has become a concern in the copper market. High-energy prices could slow and may have already slowed global economic growth, and that could hurt demand for copper from many industrial users.
US oil prices were lower during copper's trading session, then bounced higher after the close. Traders said the market largely discounted a drop in the Conference Board's gauge of consumer confidence, which fell to 92.8 in October, the lowest level in seven months.
But some said the market would be watching the Federal Reserve Board's next interest rate decision with great interest. "If they raise rates, that would be negative for copper," said one trader.
The Federal Open Market Committee next meets on November 10. Traders noted that the market's fundamentals have not changed in the past month. "Demand is still good and inventories continue to creep lower; so fundamentally, the market looks healthy," said one.
On the London Metal Exchange, three months copper was indicated at $2,770/2,780 in evening trade, up $20 from Monday's close. Support was cited at $2,750 and prices were expected to hold in a $2,770/2,780 to $2,840 band.