BLBG:Copper Advances for a Third Day Before U.S. House-Sales Reports
Copper rose for a third day in London before reports projected to indicate strengthening sales of houses in the U.S., the world’s second-biggest consumer of the metal.
Sales of existing houses climbed in June to the highest level since November 2009, a Bloomberg survey of economists showed before figures today. A report on July 24 will show sales of new dwellings increased for a fifth month in six, according to a separate survey. Investors bought copper to close out bets on a drop, said Australia & New Zealand Banking Group Ltd.
“Our views are skewed to the bullish side currently for growth-related assets,” Guy Wolf, global head of market analytics at Marex Spectron Group in London, said by e-mail today. “Positioning in base metals remains short.”
Copper for delivery in three months advanced 1 percent to $6,986 a metric ton by 10:53 a.m. on the London Metal Exchange. Copper for delivery in September rose 0.9 percent to $3.1695 a pound on the Comex in New York.
An average single-family house contains 439 pounds of copper, used in pipes and wiring, according to Viking Minerals Inc. in Peoria, Arizona.
Hedge-fund managers and other large speculators cut their net-short position, or wagers on falling copper prices, for a third week to 15,673 Comex futures and options contracts as of July 16, U.S. Commodity Futures Trading Commission data showed.
Copper also advanced as the dollar weakened and after the People’s Bank of China on July 19 ended a floor on borrowing costs as part of an effort to liberalize the financial system in the world’s biggest copper consumer.
“Prices could lift further today after the PBOC announced measures to liberalize interest rates,” Mark Pervan, an analyst at ANZ in Melbourne, said in a report.
LME copper stockpiles fell for a fourth session to 634,650 tons, daily exchange figures showed. Orders to remove the metal from warehouses declined 2.1 percent to 327,000 tons.
Nickel touched a five-week high in London. Aluminum, tin, zinc and lead climbed.
To contact the reporter on this story: Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
