LIVE FUTURES REPORT 02/10: Comex copper price softens on strong dollar index

Comex copper prices started the first trading day of October in negative territory with a stronger dollar keeping the red metal suppressed.

Copper for December settlement on the Comex division of the New York Mercantile Exchange dipped 0.60 cents or 0.2% to $2.9490 per lb.

“We remain bullish for copper’s fundamentals but prices had started to look overstretched recently so some profit-taking seemed probable, which is now unfolding,” Metal Bulletin senior analyst William Adams said.

“The stronger dollar is also no doubt acting as a headwind,” he added.

Meanwhile, China is already enforcing some restrictions on copper imports, cutting quotas and limiting the number of licences in some regions of the country, sources told Metal Bulletin, although a full ban on scrap copper imports has not yet been confirmed.

Chile’s Escondida copper mine reported a 91% year-on-year decline in net profit for the first half of 2017, which it attributed largely to a 44-day strike at the operation in this year’s first quarter, the company said on September 28.

In the precious metals space, Comex gold for December delivery fell $5.60 or 0.4% to $1,279.20 per oz.

Currency moves and data releases 

  • The dollar index was up 0.42% to 93.46. It has eased slightly after reaching as high as 93.67 on September 28, the highest since August 18. 
  • In other commodities, the Texas light sweet crude oil spot price fell 2.67% to $50.30 per barrel. 
  • China’s central bank said on Saturday that it would cut the reserve requirement ratio –which is the amount of cash that some banks must hold as reserves – for the first time since February 2016 to encourage lending to small business and the agricultural sector. 
  • In data released on Saturday, China’s official manufacturing purchasing managers’ index (PMI) for September came in at 52.4, above forecast of 51.5 and August’s reading of 51.7 – the September print was the highest since April 2012. 
  • “With news that some parts of heavier-polluting Chinese industry will be curtailed from this month…the official Manufacturing PMI – and the non-manufacturing PMI for that matter – released over the weekend revealed no such net impact,” National Australia Bank said on Monday. 
  • Economic data due later today includes final manufacturing PMI, ISM manufacturing PMI, construction spending, ISM manufacturing prices from the USA and manufacturing PMI from the UK.


Recent Base Metals News

Official LME Base Metal Prices
Cash Ask 3M Ask
Copper 6801 6801
Aluminium 2167 2166
Nickel 14980 15060
Zinc 3021.5 2965.5
Lead 2385 2399
Tin 20600 20550
Al.Alloy 1765 1770
NASAAC 1728 1755
(Data is from previous business day)

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