US copper futures surged early Thursday as funds and speculators tried to keep up with overnight buying as the dollar tumbled to a new low against the euro, traders said. "The Chinese were buying, London was buying it. We're just following London really. Arbitrage hasn't changed, it's exactly where it went out yesterday. I think it's short covering. But the Chinese were buying heavily overnight," said one broker. Benchmark December copper on the New York Mercantile Exchange's COMEX division surged 1.50 cents to $1.4255 a lb., after extending the upside to $1.4320, its highest level since October 13. The low was at $1.4050 a lb.
Other contracts were also up sharply, jumping from 1.60 cent to 2 cents a lb. in early business.
COMEX estimated 9 am EST copper volume at 2,000 lots.