Copper Prices Expected to Decline Amid Stronger Dollar and Rising Inventories

Strategic Insights -

Copper prices are anticipated to open Monday's trading session 2 cents lower, following a weak overnight performance on the London Metal Exchange. The December copper futures contract settled at $2.7850, down 3.8% from the previous close, as concerns about Chinese demand and a stronger U.S. dollar weighed on the market. The London Metal Exchange's copper inventories rose to 331,825 metric tons, while Comex warehouse inventories increased by 23 short tons to 53,122 short tons.

Key Takeaways:

  • Copper futures are expected to open 2 cents lower on Monday, following a weak overnight performance on the London Metal Exchange.
  • The December copper futures contract settled at $2.7850, down 3.8% from the previous close.
  • Concerns about Chinese demand and a stronger U.S. dollar contributed to the decline in copper prices.
  • London Metal Exchange's copper inventories rose to 331,825 metric tons, a 4,125 metric ton increase.
  • Comex warehouse inventories increased by 23 short tons to 53,122 short tons.
  • The decline in copper prices was also influenced by a stronger euro, with the EUR/USD rate down to $1.4669.
  • Other markets that may impact metals in the short term, such as the S&P 500 futures, were also down, with the December S&P 500 futures down 5.40 points.
  • The August Conference Board leading indicators are scheduled for release at 10 a.m. EDT, with the leading index expected to rise by 0.7%.

Statistics:

  • Copper futures expected to open 2 cents lower on Monday.
  • December copper futures contract settled at $2.7850, down 3.8% from the previous close.
  • London Metal Exchange's copper inventories rose to 331,825 metric tons.
  • Comex warehouse inventories increased by 23 short tons to 53,122 short tons.
  • October crude was down $1.49 in overnight activity.
  • The euro was down to $1.4669 from $1.4699 late Friday in New York.
  • The December S&P 500 futures were down 5.40 points in overnight activity.

Sources:

  • Dow Jones Commodities News via Comtex
  • London Metal Exchange
  • Comex division of the New York Mercantile Exchange
  • August Conference Board leading indicators