Copper Futures Settle Lower on Stronger US Dollar and Weak Crude Oil Prices

Strategic Insights -

Copper futures dropped on October 22, 2009, due to a combination of factors, including a stronger US dollar and lower crude oil prices. The December copper contract settled at $2.9980 a pound, a decrease of 3.8 cents, on the Comex division of the New York Mercantile Exchange. Participants who trade based on computer algorithms and index funds were identified as sellers of the metal by Stephen Platt, an analyst with Archer Financial Services. The market's recent rally has led to overbought conditions, according to Frank Lesh, a broker and futures analyst with FuturePath Trading.

Key Takeaways:

  • Copper futures settled lower on October 22, 2009, due to a stronger US dollar and weaker crude oil prices.
  • The December copper contract decreased by 3.8 cents to settle at $2.9980 a pound on the Comex division of the New York Mercantile Exchange.
  • Participants who trade based on computer algorithms and index funds were identified as sellers of the metal by Stephen Platt, an analyst with Archer Financial Services.
  • The market's recent rally has led to overbought conditions, according to Frank Lesh, a broker and futures analyst with FuturePath Trading.
  • Speculators are expected to take profits if copper fails to finish above $3 this week, according to Sterling Smith, a commodity trading adviser and market analyst with Country Hedging.
  • Inventories of copper stored in London Metal Exchange warehouses rose 1,525 metric tons on October 22, 2009, leaving them at 364,075 metric tons.

Statistics:

  • Copper futures decreased by 3.8 cents to settle at $2.9980 a pound on October 22, 2009.
  • Inventories of copper stored in London Metal Exchange warehouses rose 1,525 metric tons to 364,075 metric tons.
  • The US dollar index was up 0.224 point on October 22, 2009.
  • Nymex December crude oil prices decreased by 80 cents on October 22, 2009.

Sources:

  • Dow Jones Commodities News via Comtex
  • Archer Financial Services
  • FuturePath Trading
  • Country Hedging
  • London Metal Exchange
  • Nymex
  • Dow Jones Newswires