DJ BASE METALS: Comex Copper Seen 7 Cents Lower At Pit Open
DOW JONES NEWSWIRES
December copper futures are expected to open floor trading around 7 cents a
pound lower Wednesday, based on electronic activity ahead of the pit session on
the Comex division of the New York Mercantile Exchange.
Copper fell in London trading as investors exited the market and investors
sought to minimize their risk to commodity prices, traders there said. Copper
futures at the Shanghai Futures Exchange traded limit down for the third
straight day after that market reopened following a week-long holiday. Trading
has been suspended for Thursday.
The metal pared its loss but remained lower in London trading after
coordinated rate cuts by the Federal Reserve, European Central Bank and other
major banks. One London-based trader said this is a sign of weak economies and
that weak demand will persist.
In other markets that have the potential to impact metals in the short term,
the euro is up to $1.3689 from $1.3589 late Tuesday afternoon. In screen
trading ahead of the pit open, the December S&P 500 futures are up 20.60 points
to 1,026.40. November crude oil is down 80 cents to $89.26 a barrel in
overnight activity.
The main U.S. economic report Wednesday is the August pending-home sales due
out at 10 a.m., EDT (1400 GMT). Weekly U.S. energy inventory data - which can
affect crude oil, which in turn often leads metals - is scheduled for release
at 10:35 a.m., EDT (1435 GMT).
In New York Tuesday, copper rose with commodities in general, with some of
the uptick perhaps due to a softening of the U.S. dollar, analysts said.
December copper gained 4.15 cents to settle at $2.5345 per pound.
Inventories of copper stored in London Metal Exchange warehouses rose 175
metric tons Wednesday, leaving them at 208,525. The most recent Comex inventory
data, released late Tuesday afternoon, were down 180 short tons at 9,741 short
tons.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765;
allen.sykora@dowjones.com
