US copper futures rebounded from early weakness Thursday as the market digested China's decision to raise interest rates and traders took advantage of the early sell-off by buying on the dip, sources said.
"The Chinese news this morning was a big influence, but unless we see a pattern develop for interest rates over there rising, you had your reaction," said James Quinn, commodity commentator with A.G. Edwards.
By 10:37 am EDT (1437 GMT), most active July copper edged 0.10 cent higher at $3.3150 a lb, dealing in a wide range between $3.2140 to $3.3455, a new life-of-contract high.
Spot May eased 0.50 cent at $3.39 a lb, down from Wednesday's all-time COMEX record of $3.50. Floor dealers noted trading was very volatile due to extremely thin volume. COMEX copper volume at 10:00 am was estimated at only 8,000 lots.