Dec COMEX copper drops 10 cents as dollar rallies

摘要

COMEX copper futures plummeted morenthan 10 cents Friday in sympathy ofncommodities that were pressured by thenstronger US dollar. Copper for Decemberndelivery, the active month, lost 10.55ncents/lb to close at 363.75 centslb after declining steadily throughoutnLondon and New York trading. The selloffnstopped in the last hour of trading asnbuyers re-entered the market at the 363ncents level. The October spot contractnlost 9.85 cents to close at 364.85 cents.nFor the week, December COMEX lost 6.55ncents while three-months copper on thenLondon Metal Exchange lost nearly $115mt. Copper and other benchmark commoditiesnlike crude oil sold off as thenUS dollar once again appeared on thenbrink of breaking through the $1.30 levelnagainst the euro. The rally was sparkednby the end of the European Summit withnno resolution on if or when Spain wouldnseek financial assistance. One seniorndesk trader in Chicago noted that whilenthe improving economic data from the USnand China suggests improving demand fornindustrial commodities, it also reducesnthe likelihood of additional quantitativeneasing by the world’s central banks, onensenior desk trader in Chicago said. Annadded pressure on copper has beennthe massive increase in London MetalnExchange stocks in recent days, analystsnwith Germany-based Commerzbank said.n“It is not only the assertion by an adviser of China’s central bank that the statenwon’t provide sizable economic stimulusnthat is weighing on prices, but alsonthe surprisingly sharp 6.5% increase inncopper stocks registered on the LME,”nanalysts said. Stocks are also growing innShanghai Futures Exchange warehouses.nSHFE stocks rose nearly 15,000 mtnthis week to nearly 197,000 mt, 30%nhigher than levels in early September,nCommerzbank analysts noted.