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Comex copper ends up after early liquidation

NEW YORK: Comex copper ended slightly higher on Thursday, recovering from a morning seven-week low hit in spillover fund selling from Wednesday, dealers said.

March copper ended up 0.35 cents at 82.60 cents a lb, trading between 81.55 and 82.70 in featureless trade. Spot February copper rose 0.35 cent to 82.15 and the May contract closed at 83.60 cents, up 0.35.

"We had a major selloff the last few days. It got oversold and there has been a little bit of consumer buying at these lower levels," said Frederick Demler, senior minerals economist at E.D.& F. Man.

March copper triggered stop-loss sell orders in the morning, when it fell below Wednesday's 81.80 bottom on the way to its second straight low since December 15.

Last week's worrisome build-up in LME copper stocks to record levels, hung over this week's market, which was mulling whether it is in supply deficit or balance.

But metal movements back out of vaults this week finally seemed to provide support. LME warehouse stocks fell 175 tonnes on Thursday to stand at 804,125 tonnes. Comex stocks were up 150 short tons at 85,886 tons on Wednesday.

"The stock figures were somewhat constructive. They've been constructive the last few sessions and we continue to get economic data that's generally bullish on the demand front," said Demler.

Analysts peg important support at 80 cents for March copper. They said consumers will probably view that as a bargain, having only two-weeks ago paid as much as 88.50 cents when copper made contract highs.

LME copper extended losses, ending down $9 at $1,817 a tonne.

Estimated Comex volume on Thursday was 13,000 contracts, down from official turnover of 23,524 on Wednesday.

The nine-day relative strength index for March copper rose to 31 from an oversold 26 on Wednesday.

Technical analysts usually interpret an RSI reading of 70 or higher as indicating overbought conditions and 30 or below as oversold.-Reuters