US copper futures ended up on Thursday after hitting their highest levels in seven weeks, as investors took their cue from the dollar, which crumbled in the wake of a neutral Federal Reserve policy statement. Copper for July delivery settled up 5.30 cents, or 1.4 percent, at $3.83 a lb on the New York Mercantile Exchange's COMEX division.
The session range ran from $3.7780 to $3.8610 - the highest level for the July contract since May 7. Most-active September copper rose 5.20 cents to $3.8250. Copper's price action Thursday looks a little top heavy after market fails to hold early gains above key resistance at $3.86 - Michael Gross, futures analyst with Optionsellers.com.
By 1 pm EDT (1700 GMT), futures volumes estimated at 24,041 lots. Final volumes on Wednesday totaled 21,635 lots. COMEX copper stocks were unchanged at 11,040 short tons on Wednesday. The LME will extend prompt dates for primary aluminium, copper, zinc, nickel and lead futures contracts from September 29, the exchange said in a press release on Thursday.
On the production front, Zambia's copper cathode output is forecast to rise to 600,000 tonnes this year from 521,984 tonnes in 2007 while smelter capacity will jump in the next three years - mines minister Kalombo Mwansa. LME copper for three-months delivery closed up $145 at $8,445 a tonne from Wednesday's close.