Copper may drop on US housing data
Friday, 20 November 2009
SINGAPORE, Nov 19 (Bloomberg): Copper, little changed, may fall as weaker-than-estimated US housing data and expanding global inventories renewed speculation supply may outpace demand.
Builders, the biggest copper users in the US, began work on fewer new homes last month, compared with September. Housing starts slid to an annual rate of 529,000 units in October, compared with a median estimate of 600,000 in a Bloomberg News survey. The US is the biggest copper consumer after China.
"For the next few days, consolidation is the most likely price path given the latest economic numbers," Stefan Graber, analyst at Credit Suisse Group in Singapore, said in a note.
Copper for delivery in three months on the London Metal Exchange traded at $6,872.50 a metric tonne at 3:16 p.m. Singapore time, after rising to a 14-month high of $6,992 Wednesday as the weakening dollar boosted the appeal of commodities as alternative investments. The dollar strengthened 0.3 per cent to $1.4921 against the euro, from $1.4963 Wednesday, on speculation European lenders will disclose more credit losses.
The March-delivery copper contract was little changed at $3.1395 a pound on the Comex division of the New York Mercantile Exchange.
Builders, the biggest copper users in the US, began work on fewer new homes last month, compared with September. Housing starts slid to an annual rate of 529,000 units in October, compared with a median estimate of 600,000 in a Bloomberg News survey. The US is the biggest copper consumer after China.
"For the next few days, consolidation is the most likely price path given the latest economic numbers," Stefan Graber, analyst at Credit Suisse Group in Singapore, said in a note.
Copper for delivery in three months on the London Metal Exchange traded at $6,872.50 a metric tonne at 3:16 p.m. Singapore time, after rising to a 14-month high of $6,992 Wednesday as the weakening dollar boosted the appeal of commodities as alternative investments. The dollar strengthened 0.3 per cent to $1.4921 against the euro, from $1.4963 Wednesday, on speculation European lenders will disclose more credit losses.
The March-delivery copper contract was little changed at $3.1395 a pound on the Comex division of the New York Mercantile Exchange.