Comex copper prices stage modest recovery

Comex copper prices inched upward in the morning of Tuesday October 10 in the US, with markets remaining constrained following holidays in the USA, South Korea and Japan.

Copper for December settlement on the Comex division of the New York Mercantile Exchange edged up 0.90 cents or 0.3% to $3.04 per lb.

“Currently, we are seeing a very quiet start to the new week in most markets, with holidays in the USA, South Korea and Japan keeping trading volumes relatively light,” INTL FCStone analyst Edward Meir said.

“Chinese markets have reopened on Monday after a week-long break and are generally higher; a late reaction to last weekend’s news that China’s central bank will be lowering reserve rate requirements,” Meir added.

In the short term, the metals may see some more monthly investment fund roll business, then gear up for the annual LME Week events at the end of the month.

Markets experienced a boost with the Chinese returning from the Golden Week holiday. However, many will likely await the decisions of the Communist Party Congress meeting next week in Beijing on infrastructure spending, stimulus plans and so on.

In the precious metals space, Comex gold for December delivery gained $10.20 or 0.8% to $1,295.20 per oz.

Currency moves and data releases

  • The dollar index was down 0.51% to 93.26.
  • In other commodities, the Texas light sweet crude oil spot price was up 1.90% to $50.52 per barrel.
  • In European data today, August industrial production in France dropped 0.3%, against a forecast 0.4% increase. But the Italian reading for the same month rose a better-than-expected 1.2%. UK industrial production increased 0.2%, while manufacturing production was up by 0.4%
  • In the USA, the NFIB small business index in September stood at 103, below the economic consensus of 105.1. October’s IBD/TIPP economic optimism came in at 50.3, missing the forecast of 54.2.
  • In addition, US Federal Open Market Committee member Neel Kashkari is speaking today.