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Copper Prices Expected to Open Lower on Monday

Strategic Insights

— 1 min read

March copper futures are anticipated to open around 3 cents lower on the Comex division of the New York Mercantile Exchange, following overnight activity where base metals were mostly lower due to profit-taking by shorts and a strengthening dollar. Analysts have indicated that the metals may experience a resurgence in the coming days, potentially resuming last week's rally, driven by the annual re-weighting of commodity index funds. U.S. economic reports scheduled for Monday, including November construction spending, are also anticipated to have an impact on market trends.

Key Takeaways:

  • March copper futures are expected to open around 3 cents lower on Monday, based on electronic activity ahead of the pit session on the Comex division of the New York Mercantile Exchange.
  • Base metals were mostly lower in overnight activity due to profit-taking by shorts and a strengthening dollar.
  • Analysts anticipate a potential resurgence in copper prices in the coming days, driven by the annual re-weighting of commodity index funds.
  • November construction spending is scheduled for release on Monday at 10 a.m. EST (1500 GMT), with new construction expected to be down 1.2%.
  • In New York on Friday, copper futures rallied to their strongest level in two and a half weeks, with March copper settling 5.10 cents higher at $1.4610 per pound.
  • Inventories of copper stored in London Metal Exchange warehouses rose 1,500 metric tons on Monday, leaving them at 342,050.
  • The most recent Comex inventory data, released late Friday afternoon, remained unchanged at 34,514 short tons.

Statistics:

  • March copper futures are expected to open around 3 cents lower on Monday.
  • Base metals were mostly lower in overnight activity, with copper declining by 5.10 cents to $1.4610 per pound.
  • Inventories of copper stored in London Metal Exchange warehouses rose 1,500 metric tons on Monday to 342,050.
  • The most recent Comex inventory data, released late Friday afternoon, remained unchanged at 34,514 short tons.
  • November construction spending is scheduled for release on Monday at 10 a.m. EST (1500 GMT), with new construction expected to be down 1.2%.

Sources:

  • Dow Jones Commodities News via Comtex, Jan 05, 2009
  • Dow Jones Newswires, 01-05-09 0754ET
  • Copyright (c) 2009 Dow Jones & Company, Inc.

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