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Comex May copper ends the week easier

NEW YORK: Comex copper futures ended softer Friday, having moved mostly sideways for the week as sources said the absence of funds with long positions pressured the market.

Muted Comex dealings steadily mirrored trading on LME for most of the day, according to dealers.

"They are following London tick for tick," one trader said.

Active Comex May settled 0.75 cent lower at 79.15 cents a lb after ranging 79.00 to 80.30 cents. Spot March ceded 0.70 to 78.15 cents and others fell 0.75 to 1.00 cent.

Analysts attributed the current weakness in copper to instability in US stock prices as the Dow Jones Industrial Average plunged nearly 3 percent on Tuesday before turning around later in the week.

"I think we're seeing a picture of consolidation," Antonia Fox, vice president at Triland USA said of copper business. "The interest rate jitters that the stock market has seen visited the commodity industry this week and it has shaken the market a little bit."

Sources also pointed to high crude oil prices, rising US interest rates and high copper inventories as possible threats to the market.

"Basically, I think we're just trying to regroup," Fox said. "We're looking at relatively good fundamentals. I don't think you're going to see prices spike any time soon, unless you have a fund that goes long the market."

Comex copper volume was light this week as many participants kept to the sidelines, awaiting fundamental news.

"(The market) needs buying and it's not coming in," Fox said.

Friday's final estimated volumes for totalled 9,000 contracts against Thursday's official tally of 5,656 lots.

On the technical side, Fox said that "81 cents is really good resistance. Producers aren't going to be hedging anything via options until it gets up there."

Fox pegged near-term support in Comex May copper at 78.00 cents a lb.

LME three-months copper finished at $1,756 a tonne, up $4 from Thursday's close and stuck in a range between $1,735 and $1,775 a tonne, dealers said.

In London, speculative buying was held in check largely by mounting worries over US share markets, a LME dealer said.

On Friday, LME copper stocks fell 3,725 tonnes to 836,150 tonnes, while Comex stocks rose 71 short tons to total 96,268 tons in Thursday's report.

Comex is a division of the New York Mercantile Exchange.-Reuetsr