Copper Futures Decline Ahead of Key Housing Report

Copper futures took a hit on Wednesday morning as traders reacted to a weak report on US existing home sales in May. The market gave back some of Tuesday's gains as the US dollar traded near steady and commodity indexes were weak, leading speculative fund selling. The housing sector continues to struggle due to shaky confidence in the US jobs market, with the unemployment rate remaining elevated at 9.7% in May.

Key Takeaways:

Copper futures for nearby July delivery were down 3.65 cents, or 1.20%, at $2.9555 per pound on the Comex division of the New York Mercantile Exchange.
Most active September copper was down 3.45 cents, or 1.2%, at $2.9745 a pound.
The US dollar is trading near steady, which is encouraging speculative fund selling in copper futures.
Copper futures are sensitive to economic data due to their widespread use in construction.
The Federal Open Market Committee will release its interest rate decision at 2:15 p.m. EDT, with economists expecting no change in the Federal funds target rate range from 0%-0.25%.

Statistics:

Copper futures decline: 3.65 cents (1.20%) in July delivery and 3.45 cents (1.2%) in September delivery.
US dollar: trading near steady.
Unemployment rate: 9.7% in May.
Existing home sales: 2.2% decline in May, versus a 6% rise expected by most economists.
May new home sales: expected to decline by 20.6%.

Sources:

Dow Jones Commodities News via Comtex
Tom Sellen, Dow Jones Newswires; 913-322-5177; tom.sellen@dowjones.com