US copper futures extended a profit-taking retreat from fresh 10-1/2 month highs Friday morning, after data showing a drop in US consumer confidence reinforced concerns about the pace of economic recovery. Copper for September delivery slipped 6.00 cents, or 2 percent, to $2.8540 a lb by 10:17 am EDT (1417 GMT) on the New York Mercantile Exchange's COMEX division.
Range from $2.8515 to $2.9490, a new high dating back to September 29. End-of-week profit taking drags copper values lower. Market still in an uptrend above initial support at $2.7330 - Larry Young, senior trader at Infinity Futures Inc in Chicago. COMEX estimated futures volume at 13,874 lots by 10 am. Since July, benchmark September contract up nearly 30 percent. Profit-taking losses outweigh data showing a better-than-expected rise in US industrial production in July.
Economic recovery hopes dimmed after Reuters/University of Michigan Surveys of Consumers reported a drop in confidence in early August. London Metal Exchange warehouse stocks went up 900 tonnes to 292,875 tonnes on Friday. COMEX copper warehouse stocks slipped 296 short tons to 53,392 short tons as of Thursday.
Shanghai copper warehouse stocks up 20 percent to 76,107 tonnes from 63,434 tonnes a week earlier. First half copper production at Chile's Codelco, the world's biggest copper miner, up 16 percent from year-ago levels. LME copper for three-months delivery last traded down $95 at $6,300 a tonne, after hitting a new 10-1/2 month peak at $6,480.