Copper Prices Remain Sideways Amid Economic Uncertainty

Copper prices on the Comex exchange edged higher on Monday but remained largely stagnant due to the uncertain economic environment. President and CEO of Freeport-McMoRan Copper & Gold Inc., Richard Adkerson, warned that the sector must be prepared to deal with an uncertain future. Meanwhile, commercial traders continued to add to their net long positions, while large speculative traders increased their net short positions.

Key Takeaways:

Copper prices on the Comex exchange closed modestly higher, with March futures up 1.90 cents at $1.4350 cents a pound.
Short covering and weaker stock prices contributed to the increase, but a stronger U.S. dollar pushed prices down from early-session highs.
Commercial traders increased their net long positions in Comex copper futures, adding 2,614 contracts to their total of 58,802 contracts.
Large speculative traders added to their net short positions, increasing their net short position in copper by 1,652 contracts.
LME copper prices in London trading were range-bound between $3,045-$3,600/ton, with analyst Ed Meir suggesting that a crack in the dollar or a sizable rally in the U.S. equity markets was needed to shake copper out of its current doldrums.

Statistics:

Copper prices on the Comex exchange closed up 1.90 cents at $1.4350 cents a pound in March futures.
May copper futures ended up 1.80 cents at $1.4510.
Commercial traders increased their net long positions by 2,614 contracts in the latest week.
Large speculative traders added 1,652 contracts to their net short position in copper.
LME copper prices in London trading were range-bound between $3,045-$3,600/ton.

Sources:

Dow Jones Commodities News via Comtex (Feb 23, 2009)
BMO Capital Markets global metals and mining conference in Hollywood, Fla.
Infinity Futures (cited via Larry Young, senior trader)
CFTC weekly commitments of traders report (issued Feb 20, 2009)
MF Global analyst Ed Meir (cited via MF Global)