Copper Futures Falter on Demand Concerns and Profit Taking

Copper futures declined on Wednesday due to concerns over demand, lower oil prices, and a stronger US dollar, leading to profit taking ahead of the Federal Reserve interest rate announcement. The December copper contract lost 5.65 cents, settling at $2.8080 a pound on the Comex division of the New York Mercantile Exchange. Market analysts, including Michael Gross of OptionSellers.com, suggested that speculators may be losing their nerve, as there is no clear fundamental reason for copper prices to trade above $3.

Key Takeaways:

• Copper futures lost 5.65 cents, settling at $2.8080 a pound on the Comex division of the New York Mercantile Exchange.
• Michael Gross, broker and futures analyst with OptionSellers.com, stated that there is no fundamental reason for copper prices to trade above $3.
• Speculators may be losing their nerve, leading to lower prices if they pull back.
• MF Global analyst Edward Meir noted that investors are fretting about fundamentals, including demand and rising inventories.
• Profit taking and falling oil prices also contributed to the decline in copper prices.
• Crude oil futures prices dropped below $69 a barrel following rising inventories and a sharp drop in demand.
• Copper inventories stored in London Metal Exchange warehouses rose 175 metric tons, leaving them at 331,950.
• Comex inventory data showed a rise of 72 short tons, bringing the total to 53,194 short tons.

Statistics:

• Copper futures lost 5.65 cents, settling at $2.8080 a pound.
• Crude oil futures prices dropped below $69 a barrel.
• Copper inventories stored in London Metal Exchange warehouses rose 175 metric tons.
• Comex inventory data showed a rise of 72 short tons, bringing the total to 53,194 short tons.

Sources:

• Dow Jones Commodities News via Comtex
• OptionSellers.com
• MF Global
• Infinity Futures
• Dow Jones Newswires
• New York Mercantile Exchange (NYMEX)