Strong LME sentiments helped the copper prices to extend previous gains in the domestic market on Monday. Copper for three month delivery rose 0.9 per cent to $8 388 a tonne the highest price since July 2008 on the LME. Copper November contract traded at Rs 372.15 per kg up Rs 2.45 traded in the range of Rs 372.90 370.00 per kg. Total volumes recorded 5 021 lots. February contract edged up by Rs 2.25 or 0.61 percent to Rs 373.90 per kg with a business turnover of two lots. Copper ended positive as a lackluster jobs report increased market expectations of a second monetary stimulus. Copper prices have also rallied on hopes that so called quantitative easing will boost metal demand through stronger economic growth.
Chile the world s largest copper producer is struggling to maintain output as its resources are depleting and not enough world class deposits have been discovered to replace or increase production. Once a week data released on Fridays by the Shanghai Futures Exchange showed a weekly rise of 6 727 metric tons to 94 174 tons. For today market is looking for the support at 368.7 a break below could see a test of 367.7 and where as resistance is now likely to be seen at 370.7 a move above could see prices testing 371.6.
