RTRS: US copper hits 3-wk high on down dlr, upbeat data
NEW YORK, May 29 (Reuters) - U.S. copper futures rallied to a three-week high early on Friday as the dollar dove against the euro and economic optimism remained upbeat after a batch of data suggested the global recession may be easing.
For detailed report on global copper markets, click on [MET/L]
* Copper for July delivery HGN9 was trading up 5.00 cents, or 2.3 percent, at $2.1870 a lb by 11:01 a.m. EDT (1501 GMT) on the New York Mercantile Exchange's COMEX division.
* Morning range from $2.13 to $2.1990, a new high for the benchmark contract dating back to May 8.
* COMEX estimated futures volume at 7,443 lots by 10 a.m.
* Copper rally rooted in U.S. economic data on Thursday showing new orders for U.S. durable goods rise 1.9 percent from March -- the biggest percentage advance since December 2007. [ID:nN28317740]
* Sentiment remained upbeat after Japan's industrial output soared a much more-than-expected 5.2 percent in April. [ID:nT20910]
* Further underpinning the industrial metal was a Commerce Department report that showed the U.S. economy contracted at 5.7 percent annual rate in the first quarter , slightly less than the government initially estimated. [ID:nN28352285]
* "The talk is that the economy is better ... It is stimulating extra demand for copper," said James Steel, chief commodities analyst at HSBC.
* The U.S. dollar extended losses against the euro following the GDP report. [USD/]
* A softer dollar typically lifts dollar-denominated copper by making it cheaper to buy for non-U.S. investors.
* Copper's gains slowed after data showed business activity in the U.S. Midwest shrank in May much more than expected. [ID:nN29401427]
* London Metal Exchange warehouse stocks slipped 4,850 tonnes to 312,275 tonnes on Friday.
* Canceled warrants -- metal set to leave warehouses -- dropped to 38,825 tonnes from 43,650 tonnes in the previous session.
* COMEX copper stocks CMWSU added another 1,553 short tons on Wednesday, bringing total warehouse levels to 55,682 short tons.
* Japan's exports of refined copper in April rose 154 percent from a year earlier to 65,879 tonnes -- the seventh straight month of an increases - Ministry of Finance data.
