US copper drops

09 Apr, 2010

US copper futures closed lower on Wednesday, pressured by the dollar's advance on the euro, but traders said the red metal's overbought conditions were ripe for some downward correction after hitting a 21-month high in the previous session. Copper for May delivery closed down 1.95 cents at $3.5975 per lb on the NYMEX's COMEX division. Range remained narrow at $3.5860 to $3.6350.
On Tuesday, May copper reached its highest level since early July 2008 at $3.6385. COMEX pegged final copper futures volume at 35,308 lots. Copper fell overnight and stayed at lower levels into the close as prices corrected from the 21-month highs set a day earlier - traders. LME copper warehouse stocks were down by 1,925 tonnes at 510,650 tonnes on Wednesday as they continue to come off the 6-1/2 year high of 555,075 in mid-February.
COMEX copper stocks stood even at 101,128 short tons as of Tuesday. LME copper closed the evening kerb lower at $7,945 per tonne, off Tuesday's close of $7,990 per tonne. LME copper hit a 20-month high on Tuesday at $8,010.

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