Copper futures decline
Monday, 27 July 2009
LONDON, July 26 (Bloomberg): Copper prices fell from a nine-month high as US consumer confidence dropped for the first time in five months, signaling a rebound in commodity demand may falter.
The Reuters/University of Michigan final index of consumer sentiment decreased in July to 66 from 70.8 in June. Earlier, copper jumped to $2.544 a pound, the highest since Oct. 8, on indications of a brighter economic outlook. The metal has soared 79 per cent this year.
"Copper prices have gotten way ahead of fundamentals," said Matthew Zeman, a trader at LaSalle Futures Group. "There are still problems in the economy, and people are getting concerned that prices don't reflect actual demand."
Copper futures for September delivery fell 0.2 cent to $2.522 a pound on the Comex division of the New York Mercantile Exchange. The price climbed 4.1 per cent this week. The gain this year is the second-biggest behind gasoline among 19 raw materials in the Reuters/Jefferies CRB Index.
The metal rallied earlier today after a German business- confidence report buoyed speculation that usage will rebound. The Ifo research institute in Munich said its business-climate index, based on a survey of 7,000 executives, increased to 87.3 in July from 85.9 in June.
The Reuters/University of Michigan final index of consumer sentiment decreased in July to 66 from 70.8 in June. Earlier, copper jumped to $2.544 a pound, the highest since Oct. 8, on indications of a brighter economic outlook. The metal has soared 79 per cent this year.
"Copper prices have gotten way ahead of fundamentals," said Matthew Zeman, a trader at LaSalle Futures Group. "There are still problems in the economy, and people are getting concerned that prices don't reflect actual demand."
Copper futures for September delivery fell 0.2 cent to $2.522 a pound on the Comex division of the New York Mercantile Exchange. The price climbed 4.1 per cent this week. The gain this year is the second-biggest behind gasoline among 19 raw materials in the Reuters/Jefferies CRB Index.
The metal rallied earlier today after a German business- confidence report buoyed speculation that usage will rebound. The Ifo research institute in Munich said its business-climate index, based on a survey of 7,000 executives, increased to 87.3 in July from 85.9 in June.