Copper Futures Fall as Dollar Strengthens and Consumer Confidence Weakens

Strategic Insights -

Copper futures declined on the Comex division of the New York Mercantile Exchange as the dollar strengthened, oil, gold, and equities slipped, and consumer confidence numbers came in weaker than expected. The September copper futures contract settled at $2.2115 a pound, down 2.6 cents from the previous day. Analysts attributed the decline to a growing realization that the economy is not out of the woods yet, as well as the dollar's stability.

Key Takeaways:

  • Copper futures fell 2.6 cents to settle at $2.2115 a pound on the Comex division of the New York Mercantile Exchange.
  • The decline was attributed to a growing realization that the economy is not out of the woods yet, according to Stephen Platt, analyst with Archer Financial Services.
  • The University of Michigan's monthly index of consumer sentiment fell to 64.6 in July from 70.8 in June, weaker than expected.
  • The greenback's recent stability has also been pressuring commodities, according to Ralph Preston, senior market analyst with Heritage West Financial.
  • Copper inventories in London Metal Exchange warehouses fell 3,400 metric tons, leaving them at 258,575.
  • Chinese imports of copper, copper alloy, and semifinished products in June increased by 13% from May and 174% from the same month a year earlier, with a total of 475,999 metric tons imported.
  • MF Global analyst Edward Meir suggested that the massive imports of copper may not be used for local purposes, but instead stored or put back on the exchanges.

Statistics:

  • Copper futures fell 2.6 cents to settle at $2.2115 a pound.
  • The University of Michigan's monthly index of consumer sentiment fell to 64.6 in July from 70.8 in June (-6.4% change).
  • Chinese imports of copper, copper alloy, and semifinished products in June increased by 13% from May (475,999 metric tons) and 174% from the same month a year earlier (475,999 metric tons vs. 175,399 metric tons in June 2008).
  • Copper inventories in London Metal Exchange warehouses fell 3,400 metric tons to 258,575.

Sources:

  • "Copper futures fall as dollar strengthens, weak consumer confidence numbers" by Matt Whittaker, Dow Jones Newswires.
  • "Comex: September copper contract settles at $2.2115 a pound" (Dow Jones Commodities News via Comtex).
  • "University of Michigan's monthly index of consumer sentiment: 64.6 in July" (University of Michigan).
  • "Chinese imports of copper, copper alloy, and semifinished products: 475,999 metric tons in June" (China Customs).
  • "Copper inventories in London Metal Exchange warehouses: 258,575 metric tons" (London Metal Exchange).
  • "MF Global analyst Edward Meir: Massive imports of copper may not be used for local purposes" (MF Global).