US copper drops

08 Apr, 2010

US copper futures finished Tuesday with moderate losses after setting a 21-month high as enthusiasm over recent strong US economic data fell prey to profit taking once the dollar advanced on the euro, traders said. Copper for May delivery ended 1.45 cents lower at $3.6170 per lb on the NYMEX's COMEX division. Range was tight, running from $3.6005 to $3.6385, the highest level for the May contract since early July 2008.
COMEX estimated volume at a modest 29,005 lots by the close. Copper held to a narrow range all day, despite rising to a new high reaching back 21 months on the May contract. A rising dollar undermined copper's early advance - traders. Despite copper's lower finish, it may just be pausing to consolidate its recent run-up - chartists.
London Metal Exchange copper prices hit 20-month high above $8,000 a tonne, improving market sentiment. LME and Shanghai Futures Exchange reopened Tuesday after holiday on Monday. Chile's mining minister reiterated his pledge to respect existing contracts as the world's biggest copper producer considers increasing royalties in order to fund post-quake reconstruction. COMEX copper stocks up 25 at 101,128 short tons as of Monday. LME copper closed the kerb at $7,990 per tonne.

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