US copper futures extended a two-day rally Friday morning, with steep inventory declines in Shanghai warehouses and another positive day on Wall Street fuelling the red metal's early push higher, traders said.
Investors added $14.58 billion to US-based equity mutual funds in the week ended Wednesday, compared to an outflow of $10.15 billion the previous week, according to TrimTabs Investment Research of Santa Rosa, California.
"It might be suggesting, at least at this point, that money is being committed to the market," he said. "The fact that we're seeing such a huge net inflow into US stock funds tells me that there is some sort of strength besides this wave of buying, which I think you're seeing rolling into the copper."
Copper for December delivery was up 8.10 cents, or 2.6 percent, to $3.1445 a lb by 10:47 am EST (1547 GMT) on the New York Mercantile Exchange's COMEX division, moving between $3.0620 and $3.1640. Most-active March futures firmed 7.75 cents to $3.1715, near the upper end of its $3.0875 to $3.1950 morning band. By 10:00 am, volumes were estimated at a modest 5,555 lots.