Copper Prices Expected to Decline on Monday

Strategic Insights -

The price of copper futures is expected to open 5 cents a pound lower on Monday due to electronic activity ahead of the Comex division of the New York Mercantile Exchange. This decline comes after a weak performance in Shanghai overnight, where base metals fell due to negative spillover from weaker Chinese equities. Meanwhile, the euro has also declined to $1.4282 from $1.4300 late Friday afternoon, further weighing on copper prices.

Key Takeaways:

  • Copper futures are expected to open 5 cents a pound lower on Monday, following electronic activity ahead of the Comex division of the New York Mercantile Exchange.
  • The decline in copper prices is attributed to a weak performance in Shanghai overnight, where base metals fell due to negative spillover from weaker Chinese equities.
  • The euro's decline to $1.4282 from $1.4300 late Friday afternoon has further weighed on copper prices.
  • The September S&P 500 futures are down 5.70 points to 1,021.70, and October crude oil is down $1.37 to $71.37 a barrel in overnight activity.
  • Economic reports on Monday include the NAPM New York business activity index, Chicago Purchasing Managers Index, and Dow Jones economic sentiment index, among others.
  • In New York on Friday, copper futures hit their strongest price in 11 months, advancing to within a hair's breadth of $3 a pound on technical momentum, supply issues, and a late reaction to economic data and the U.S. dollar's slide.
  • December copper gained 7.85 cents to settle at $2.9505 a pound, while the most recent Comex inventory data, released late Friday afternoon, were steady at 52,981 short tons.

Statistics:

  • Copper futures are expected to open 5 cents a pound lower on Monday.
  • The September S&P 500 futures are down 5.70 points to 1,021.70.
  • October crude oil is down $1.37 to $71.37 a barrel in overnight activity.
  • December copper gained 7.85 cents to settle at $2.9505 a pound.
  • The most recent Comex inventory data were steady at 52,981 short tons.

Sources:

  • Dow Jones Commodities News via Comtex
  • Dow Jones News Services
  • Allen Sykora, Dow Jones Newswires; 541-318-8765; allen.sykora@dowjones.com