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Comex copper eyes recovery, nudging to firm close

NEW YORK: Comex copper futures managed to gain a firmer toehold in a move toward recovering from selling pressure during its previous two sessions but traders caution this may not enough to push prices significantly higher.

Active May copper held onto its gains, closing up 0.50 cent to 80.30 cents a lb, trading 79.30 to 81.00 cents, while spot March rose 0.45 cent to end at 79.15 cents.

"It has to get over 82.50 cents (in the May contract) to bring it back to life," said one broker. He further characterised the day's action as a mix of short-covering and bargain hunting.

Floor traders said dealings also included some fresh buying interest but volumes were only moderate.

"It's just a correction within a larger correction," said the broker.

Final estimated volumes reached 13,000 contracts, compared with final volume on Tuesday which was estimated at 22,000 contracts, and a new daily record on Monday of 35,444 contracts traded.

Dealers pegged near-term support in May copper at 78 cents a lb and again at 77.80 cents, while resistance was called at around 83 cents.

"We're seeing the beginning of a reaction in the physical market from the Far East," said James Steel, commodity analyst with Refco Inc. "(Comex) got back over its first technical hurdle and basically, the market is putting in the beginning of a recovery."

In London trading the day's action was a mix of short-covering and overnight consumer interest which helped keep prices on firm footing.

March options declaration was largely uneventful and the three months copper price climbed to $1,763.50 a tonne, up $30.50, during the morning session.

LME copper stocks on Tuesday rose 3,950 tonnes to total 823,900 tonnes, and Comex stocks gained 125 short tons to 95,636 tons on Monday.

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