Copper Futures Consolidate Amid Market Fluctuations
Copper futures traded in a narrow range, influenced by movements in other markets, and ultimately settled with a small gain as investors consolidated their positions. Market analysts attributed the market's behavior to a combination of factors, including fluctuations in the currency market and uncertainty about demand prospects from Asia and the rest of the world.
Key Takeaways:
- Copper futures added 0.45 cent to settle at $2.2695 per pound on the Comex division of the New York Mercantile Exchange.
- Market analysts, including Joel Crane of Deutsche Bank and Stephen Platt of Archer Financial Services, attributed the market's behavior to currency fluctuations and uncertainty about demand prospects.
- Copper inventories in London Metal Exchange warehouses fell 1,875 metric tons on Wednesday, leaving them at 283,175 metric tons.
- Analysts, including Ralph Preston of Heritage West Financial, noted that copper is holding above chart support around the $2.20 area for the September futures, and that a close below $2.15 would be a negative signal.
- Inventories of copper stored in Comex warehouses increased by 36 short tons to 59,523 short tons in the most recent data.
Statistics:
- Copper futures added 0.45 cent to settle at $2.2695 per pound.
- Copper inventories in London Metal Exchange warehouses fell 1,875 metric tons to 283,175 metric tons.
- Comex inventories of copper increased by 36 short tons to 59,523 short tons.
- Currency fluctuations, particularly a weaker greenback, would normally help metals, but copper's movements were also influenced by other factors.
Sources:
- Dow Jones Commodities News via Comtex, June 17, 2009
- Deutsche Bank, Joel Crane
- Archer Financial Services, Stephen Platt
- Heritage West Financial, Ralph Preston
- ABC News, Dow Jones & Company, Inc. 2009