Copper Futures End Near Steady as Technical Support Meets with Pressure from Stronger U.S. Dollar

Strategic Insights -

Copper futures experienced a mixed day on Wednesday, with July copper rising 0.15 cents to settle at $2.3670 a pound on the Comex division of the New York Mercantile Exchange. Analysts attributed the consolidation to a stronger U.S. dollar, which put pressure on the metal. However, copper held its ground as it formed support around $2.35. The selling in copper was largely driven by long liquidation, rather than fresh selling, with participants booking profits.

Key Takeaways:

  • July copper futures rose 0.15 cents to settle at $2.3670 a pound on the Comex division of the New York Mercantile Exchange.
  • Technical support met with pressure from a stronger U.S. dollar, leading to consolidation in copper prices.
  • The selling in copper was primarily driven by long liquidation, rather than fresh selling, with participants booking profits.
  • Commercial accounts sold into rallies, while investors continued to believe in the copper rally.
  • Copper inventories in London Metal Exchange warehouses fell 2,075 metric tons on Wednesday, to 294,275.
  • The most recent Comex inventory data showed 57,513 short tons, up 27 short tons from the previous release.

Statistics:

  • July copper futures rose 0.15 cents to settle at $2.3670 a pound on the Comex division of the New York Mercantile Exchange.
  • Copper inventories in London Metal Exchange warehouses fell 2,075 metric tons on Wednesday, to 294,275.
  • The most recent Comex inventory data showed 57,513 short tons, up 27 short tons from the previous release.
  • The U.S. dollar put pressure on copper prices, leading to consolidation.

Sources:

  • Dow Jones Commodities News.
  • Sterling Smith, vice president with FuturesOne.
  • Stephen Platt, analyst with Archer Financial Services.
  • Frank Lesh, broker and futures analyst with FuturePath Trading.
  • Edward Meir, MF Global analyst.
  • Matt Whittaker, Dow Jones Newswires.